I  Hit  CIJICAGO  SlOCK  KXCH 


UC-NRLF 


*B    170    TEE 


CONSTITUTION 


BY-LAWS 


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THE  CHICAGO  STOCK  EXCHANGE 


ORGANIZED  1882 


CONSTITUTION 


AND 


BY-LAWS 


REVISED  AND  ADOPTED 
DECEMBER,  189S 


-{jjOJ-  0-t  -'^^f^'^^^'ItM  ifC/iAA 


Press  of 
Battis  ajvd  Ghoff 


CONSTITUTION. 


ARTICLE  L 

TITLE    OF   THE   ASSOCIATION. 

The  title  of  this  association  shall  be  '*The 
Chicago  Stock  Exchange." 

ARTICLE  II. 

GOVERNMENT    OF    THE    EXCHANGE. 

The  whole  government  of  the  Exchange  shall 
be  vested  in  a  Governing  Committee  composed 
of  the  President  and  twenty-four  members,  but 
after  the  first  Monday  of  June,  1898,  to  be  com- 
posed of  the  President  and  eighteen  members, 
and  to  be  elected  in  the  manner  hereinafter 
provided. 


4  THK   CHICAGO  STOCK   EXCHANGE 

ARTICLE  III. 

ELECTIONS,    OFFICERS    AND   ASSISTANTS. 

Section  i.  The  Officers  of  the  Exchange 
shall  consist  of  a  President,  a  Vice-President,  a 
Treasurer,  a  Secretary,  and  the  Governing  Com- 
mittee. 

Sec.  2.  There  shall  also  be  elected,  as  here- 
inafter provided,  a  Chairman,  a  Vice-Chairman, 
and  a  Manager  of  the  Clearing  House. 

Sec  3.  The  President  and  Treasurer  shall 
be  elected  by  the  Exchange  by  ballot,  on  the 
first  Monday  of  June  in  each  year. 

There  shall  also  be  elected  a  Governing  Com- 
mittee in  the  manner  following:  On  the  first 
Monday  of  June,  1898,  there  shall  be  elected 
two  (2)  Members  to  take  the  place  of  the  eight 
(8)  Members  whose  terms  expire  at  that  time. 
Said  two  members  to  hold  their  office  for  three 
years  thereafter.  On  the  first  Monday  of  June, 
1899,  there  shall  be  elected  eight  (8)  Members, 
two  (2)  of  whom  shall  hold  their  office  for  two 
years,  and  six  (6)  of  whom  shall  hold  their 
office  for  three  years.     On  the  first  Monday  of 


CONSTITUTION  5 

June,  1900,  there  shall  be  elected  eight  (8) 
Members,  two  (2)  of  whom  shall  hold  their 
office  for  one  year,  and  six  of  whom  shall  hold 
their  office  for  three  years. 

Thereafter,  beginning  June,  1901,  there  shall 
be  held  on  the  first  Monday  of  June  in  each 
year  an  election  for  six  (6)  Members  of  the 
Governing  Committee,  who  shall  hold  their 
office  for  three  years. 

The  candidate  or  candidates  having  the 
largest  number  of  votes  shall  be  declared 
elected. 

At  said  election  there  shall  also  be  chosen  a 
Nominating  Committee  to  consist  of  five  mem- 
bers of  the  Exchange.  The  duty  of  said  Com- 
mittee shall  be  to  prepare  and  report  to  the 
Exchange,  thirty  days  prior  to  the  annual  elec- 
tion, a  ticket  for  the  annual  election  next  suc- 
ceeding their  election.  They  shall  hold  office 
for  one  year,  and  any  vacancy  on  the  Commit- 
tee shall  be  filled  by  the  President  of  the  Ex- 
change within  one  week  after  such  vacancy 
occurs. 

Sec.  4.  The  Governing  Committee,  at  its 
first   meeting  after  the  annual   election,  shall 


6  THE   CHICAGO   STOCK  EXCHANGE 

choose  from  its  own  members  the  Vice-Presi- 
dent of  the  Exchange.  It  shall  at  the  same 
time  choose  a  Secretary,  a  Chairman,  a  Vice- 
Chairman,  and  a  Manager  of  the  Clearing 
House. 

Sec.  5.  In  case  a  vacancy  shall  occur  in  the 
office  of  President,  or  Treasurer,  a  new  election 
shall  be  held  by  the  Exchange,  by  ballot,  to 
supply  such  vacancy,  within  thirty  days  there- 
after, upon  a  day  to  be  fixed  by  the  Governing 
Committee,  notice  whereof  shall  be  given  by 
said  Committee  by  posting  same  in  the  rooms 
of  the  Exchange  for  at  least  five  days.  In  case 
a  vacancy  shall  occur  in  the  Governing  Com- 
mittee, it  shall  be  filled  by  said  Committee  un- 
til the  next  annual  election.  In  case  a  vacancy 
shall  occur  in  the  office  of  Vice-President, 
Secretary,  Chairman,  Vice-Chairman,  or  Man- 
ager of  the  Clearing  House,  it  shall  be  filled 
by  the  Governing  Committee  at  its  next  meet- 
ing. 

Sec  6.  No  person  shall  be  eligible  to  any 
office  or  position  in  the  Exchange  who  shall 
not  be  at  the  time  of  his  election  a  member  in 
good  standing. 


CONSTITUTION  7 

ARTICLE  IV. 

GOVERNING   COMMITTEE. 

Section  i.  All  powers  necessary  for  the 
government  of  the  Exchange  shall  be  vested 
in  the  Governing  Committee.  They  shall  have 
power  to  try  all  offenses  under  or  against  the 
laws  of  the  Exchange,  and  all  charges  against 
members,  and  their  decisions  shall  be  final. 
They  shall  receive  a  compensation  of  five  dol- 
lars each  for  every  regular  meeting  at  which 
they  shall  be  present. 

Sec.  2.  The  Governing  Committee  may,  at 
any  time  during  the  pendancy  of  a  case  before 
any  of  the  standing  committees,  ask  for  such 
information  and  give  such  instructions  as  they 
may  deem  proper. 

Sec  3.  Any  member  of  a  Standing  Com- 
mittee, before  which  a  case  may  be  pending, 
shall  have  the  right,  during  the  consideration  of 
such  case,  or  within  two  days  after  a  decision 
has  been  made  thereon,  to  demand  a  reference 
of  the  same  to  the  Governing  Committee  for 
final  adjudication,  and  the  Chairman  of  the 
Standing  Committee  shall  notify  the  President 


8  THE   CHICAGO   STOCK   EXCHANGE 

of  the  Governing  Committee  of  such  reference 
at  the  next  regular  meeting.  No  member  of 
the  Governing  Committee  shall  participate  in 
the  adjudication  of  a  case  in  which  he  is  per- 
sonally interested. 

Sec.  4.  The  President  may  call  a  meeting  of 
the  Governing  Committtee  at  any  time.  He 
shall  call  a  meeting  at  the  request  of  six  mem- 
bers. In  the  absence  of  the  President  any  six 
members  of  the  Governing  Committee  may  call 
a  meeting  by  written  notice. 

Sec  5.  A  majority  of  all  the  members  of  the 
Governing  Committee,  or  of  any  standing  or 
sub-committee,  shall  be  necessary  to  constitute 
a  quorum. 

Sec.  6.  Any  member  of  the  Governing  Com- 
mittee who,  except  in  case  of  illness  or  leave 
obtained  from  the  presiding  officer,  shall  absent 
himself  from  the  meetings  of  the  committee 
during  three  consecutive  regular  meetings,  may 
be  dropped  from  the  committee  by  a  majority 
vote  of  the  same,  and  the  vacancy  so  occuring 
shall  be  filled  as  provided  in  Section  5  of  Article 
III  of  the  Constitution. 


CONSTITUTION  9 

ARTICLE  V. 

STANDING   COMMITTEES. 

As  speedily  as  possible  after  each  annual 
election  the  President  shall  appoint  from  the 
members  of  the  Governing  Committee  the  fol- 
lowing standing  committees  for  the  year,  the 
same  to  be  approved  by  the  Governing  Com- 
mittee. Should  special  exigencies  require  it, 
the  President  shall  have  a  right  to  appoint 
committees  ad  interim  to  act  until  the  regular 
appointments  are  made: 

First.  A  Finance  Committee  consisting  of  five 
members,  who  shall  have  the  control  of  all  dis- 
bursements, and  shall  have  charge  of  the  funds 
of  the  Exchange,  including  the  Gratuity  Fund. 
They  shall  invest  the  surplus  money  in  the 
Treasurer's  hands  in  such  securities  as  they 
may  think  most  advisable,  and  shall  be  the 
custodians  thereof.  They  shall  also  have  power 
to  sell  such  securities  when  they  deem  it  advis- 
able to  do  so.  It  being  expressly  provided 
that  it  shall  require  three  (3)  members  of  said 
Committee  to  sign  checks,  invest  money,  sell, 
transfer,    or    handle    any    of    such    securities. 


10  THE   CHICAGO   STOCK   EXCHANGE 

The)^  shall  prepare  and  have  printed  for  the 
use  of  the  members  of  the  Exchange  on  the 
first  of  May  in  each  year,  a  report  of  the 
receipts  and  disbursements  for  the  year,  with 
a  statement  of  the  securities  held  by  the 
Exchange. 

Second.  A  Committee  of  Arrangements  con- 
sisting of  three  members,  who  shall  have  super- 
vision and  control  of  the  rooms  of  the  Ex- 
change to  the  end  of  securing  the  comfort  of 
members.  They  shall  appoint  and  control  all 
employes  necessary  for  that  purpose. 

Third.  A  Committee  on  Admissions  to  con- 
sist of  five  members,  to  whom  shall  be  referred 
all  applications  for  membership,  transfers  of 
membership,  and  readmissions  of  suspended 
members.  The}-  shall  determine  the  manner 
and  form  in  which  their  proceedings  shall  be 
conducted.  After  the  name  of  the  applicant 
for  admission  shall  have  been  posted  on  the 
Board  for  ten  days,  and  a  majority  of  the  whole 
Committee  approving,  the  name  of  said  candi- 
date shall  be  reported  favorably  to  the  Govern- 
ing Committee,  who  shall  have  sole  power  to 
elect  said  member. 


CONSTITUTION  11 

Fomih,  An  Arbitration  Committee  to  con- 
sist of  ^yo.  members,  whose  duty  it  shall  be  to 
investigate  and  decide  all  claims  and  matters 
of  difference  between  members  of  the  Ex- 
change, arising  through  transactions  in  bonds, 
stocks,  or  other  securities,  or  from  any  transac- 
tions in  money,  provided,  however,  that  the 
Arbitration  Committee  shall,  on  the  application 
of  either  one  of  the  parties,  or  at  its  discretion, 
have  the  power  to  dismiss  the  case  and  refer 
the  parties  to  their  legal  remedy.  They  shall 
also  have  power  to  settle  all  claims  of  members 
against  the  fund  arising  from  the  sale  of  any 
membership*  The  decision  of  this  Committee 
shall  be  final  in  cases  unless  an  appeal  be  taken 
by  a  member  of  the  Committee,  as  provided  in 
Article  IV,  Section  3,  Constitution,  or  in  cases 
involving  the  sum  of  $500  or  over,  when  either 
party  may  appeal  within  ten  days  to  the  Gov- 
erning Committee  for  final  adjudication.  The 
members  of  the  Arbitration  Committee  present 
shall  receive  $s  each  for  hearing  a  case  that 
shall  be  heard  and  decided  at  one  meeting. 
For  all  cases  occupying  the  attention  of  the 
Committee  at  more  than  one  meeting,  $10.    No 


12  THE   CHICAGO   STOCK   EXCHANGE 

compensation  shall  be  paid  to  any  member 
absent  from  the  meeting  of  the  Committee. 
The  losing  party  in  all  adjudicated  cases  to 
pay  expenses. 

Fifth.  A  Committee  on  Stock  List  consist- 
ing of  three  members,  to  whom  shall  be  referred 
the  arrangement  of  the  calls  of  stocks  and 
bonds,  and  all  applications  for  placing  stocks 
and  bonds  and  other  securities  on  the  list  dealt 
in  at  the  Exchange. 

Sixth.  A  Law  Committee  consisting  of  three 
members,  to  whom  shall  be  referred  all  ques- 
tions of  law  affecting  the  interests  of  the  Ex- 
change, and  all  additions,  alterations  or  amend- 
ments to  the  Constitution  and  By-Laws. 

Seventh.  A  Committee  on  Printing  consist- 
ing of  three  members,  whose  duty  it  shall  be  to 
order  and  supervise  the  printing  for  the 
Exchange. 

Eighth.  A  Committee  on  Commissions  con- 
sisting of  three  members,  whose  duty  it  shall 
be  to  see  that  the  rules  relating  to  commissions 
are  complied  with,  and  report  to  the  Governing 
Committee  any  violation  thereof. 


CONSTITUTION  13 

Nifith.  A  Clearing  House  Committee  con- 
sisting of  three  members,  who  shall  have  charge 
of  the  department  for  Clearing  Stocks  on  the 
Exchange,  and  may  name  the  securities  to  be 
dealt  in,  in  "the  account"  in  said  Clearing 
House.  They  shall  have  power  to  appoint  an 
assistant  manager  for  said  Clearing  House  and 
all  assistants,  and  fix  their  yearly  compensation. 

Te?ith.  Unless  otherwise  provided  for  in  the 
order  of  reference,  every  Standing  Committee 
shall  report  back  to  the  Governing  Committee 
at  its  next  regular  meeting,  or  to  Special  Meet- 
ings of  the  Governing  Committee  called  solely 
for  the  purpose  of  considering  the  same. 

ARTICLE  VI. 

DUTIES  OF  PRESIDENT  AND  VICE-PRESIDENT. 

It  shall  be  the  duty  of  the  President  to  see 
that  the  several  provisions  of  the  Constitution 
and  By-laws  are  enforced,  and  to  have  a  gen- 
eral care  of  the  interests  of  the  Exchange.  He 
may  preside  over  the  Exchange  whenever  he 
may  elect  so  to  do,  and  he  shall  be  President  of 
the  Governing  Committee. 


14  THE   CHICAGO  STOCK  EXCHANGE 

The  Vice-President  shall,  in  the  absence  of 
the  President,  assume  all  the  functions  and 
powers,  and  discharge  all  the  duties  of  the 
President.  In  case  of  the  temporary  absence 
or  inability  to  act  of  both  the  President  and 
Vice-President,  the  Governing  Committee  may 
choose  from  their  own  number  an  Acting  Pres- 
ident of  the  Excha.nge  pro- tern. 

ARTICLE  VIL 

DUTIES    OF   CHAIRMAN   AND    VICE-CHAIRMAN. 

It  shall  be  the  duty  of  the  Chairman  to  pre- 
side over  the  Board  whenever  it  shall  assemble 
for  business,  to  call  stocks  and  bonds,  maintain 
order,  enforce  the  rules,  and  perform  such  other 
duties  as  the  Governing  Committee  may  regard 
as  properly  pertaining  to  the  office. 

The  Vice-Chairman,  in  the  absence  of  the 
Chairman,  shall  assume  all  his  duties  and  func- 
tions. 

The  Chairman  shall  not  operate  in  stocks, 
bonds,  or  securities  listed  on  the  Exchange. 

Neither  shall  the  Vice-Chairman  during  the 
time  he  is  presiding.  In  the  absence  of  both, 
the  President  may  appoint  a  Chairman /r^-/^;// 


CONSTITUTION  15 

with  full  powers.     The    presiding   officer  shall 
determine  all  questions  of  order. 

ARTICLE  VIII. 

DUTIES    OF  TREASURER. 

It  shall  be  the  duty  of  the  Treasurer,  acting 
under  the  instructions  of  the  Finance  Com- 
mittee, to  receive  and  take  charge  of  all  mon- 
eys belonging  to  the  Exchange,  and  render  a 
statement  of  the  funds  at  the  annual  meetings 
of  the  Exchange,  and  at  such  other  times  as 
the  Governing  Committee  may  require,  and  he 
shall  pay  out  no  moneys  except  upon  the  order 
of  three  members  of  the  Finance  Committee, 
countersigned  by  the  Secretary. 

The  Treasurer  shall  be  required  to  give  a 
bond,  the  same  to  be  in  all  respects  satisfactory 
to  the  Governing  Committee. 

ARTICLE  IX. 

DUTIES    OF    SECRETARY. 

It  shall  be  the  duty  of  the  Secretary  to  re- 
cord in  a  book  of  minutes  the  proceedings  of 
the  Exchange,  and  to  take  charge  of  the  books 


16  THE   CHICAGO   STOCK   EXCHANGE 

and  papers  of  the  association.  He  shall  con- 
duct the  correspondence  of  the  Exchange,  and 
keep  a  record  of  the  closing  and  opening  of 
the  transfer  books  for  dividends,  elections,  etc., 
of  the  various  corporations  whose  stocks  are 
dealt  in  at  the  Exchange,  the  amount  of  such 
dividends  and  when  payable,  and  shall  post  the 
same  on  the  bulletin  board.  He  shall  also 
keep  a  ledger  containing  the  names  of  all  the 
members,  with  the  date  of  admission,  by  pur- 
chase or  otherwise,  and  all  transfers  of  mem- 
bership; also  a  list  of  suspended  members.  He 
shall  record  the  fines  imposed  by  the  presid- 
ing officer,  and  collect  them  every  month;  he 
shall  also  collect  all  dues  from  members,  and 
shall  pay  over  into  the  hands  of  the  Treasurer 
all  moneys  received  by  him  for  account  of  the 
Exchange  as  soon  as  collected,  and  he  shall 
perform  such  other  duties  as  the  Governing 
Committee  may  direct.  He  shall  act  as  Secre- 
tary of  the  Governing  Committee  when  request- 
ed by  them  to  do  so,  and  he  shall  be  required 
to  give  a  bond,  the  same  to  be  in  all  respects 
satisfactory  to  the  Governing  Committee. 


CONSTITUTION  17 

ARTICLE  X. 

DUTIES   OF   CLERK. 

It  shall  be  the  duty  of  a  Clerk,  to  be  em- 
ployed by  the  Arrangement  Committee,  to  at- 
tend at  the  Exchange  during  the  hours  of  bus- 
iness, to  enter  in  a  fair  and  legible  hand,  in  a 
book  provided  for  that  purpose,  all  sales  made 
during  sessions,  those  made  at  any  time  in  the 
room,  properly  reported  to  him  by  the  seller, 
to  announce  them  in  an  audible  voice  as  often 
as  he  may  be  directed  to  do  so  by  the  Chair- 
man during  the  sessions;  to  furnish  members, 
when  requested,  with  a  list  of  their  purchases, 
sales  or  contracts;  to  deposit  books  of  record 
in  a  fire-proof  vault,  so  that  none  but  members 
may  have  access  to  them  without  permission 
of  the  President  or  Secretary,  and  then  only  in 
the  presence  of  an  officer  of  the  Exchange. 
He  shall  not  directly  or  indirectly  deal  in 
stocks  on  his  own  account. 


18  THE   CHICAGO  STOCK   EXCHANGE 

ARTICLE  XI. 

APPLICATIONS   FOR    MEMBERSHIP — ELIGIBILITY — 
INITIATION    FEE. 

Section  i.  All  applications  for  member- 
ship shall  be  publicly  announced  by  the  pre- 
siding officer  of  the  Exchange,  together  with 
the  name  of  the  member  nominating,  and  the 
name  of  the  member  seconding  the  applicant, 
and  the  same  shall  also  be  posted  in  the  room. 

Sec  2.  Every  applicant  for  membership 
must  be  at  least  twenty-one  years  of  age  and  a 
citizen  of  the  United  States. 

Sec.  3.  The  initiation  fee  of  members  ad- 
mitted by  election  shall  be  five  thousand  dol- 
lars ($5,000.00),  and  that  for  members  admit- 
ted by  transfers  shall  be  twenty-five  dollars 
(25.00.)  In  all  cases  where  the  initiation  fee 
shall  not  be  paid  within  five  days  after  the 
admission  of  the  member,  and  his  notification 
by  the  Secretary  (except  in  cases  of  sickness, 
or  absence  from  the  city),  such  admission 
shall  be  declared  void. 

Sec  4.  Memberships  purchased  for  account 
of    the    Exchange,    as     provided    in    Article 


CONSTITUTION  19 

XXVIII  of  the  Constitution,  are  hereby  de- 
clared canceled,  and  the  number  of  members 
shall  be  limited  to  four  hundred  and  thirty- 
four  (434). 

ARTICLE  XII. 

MISSTATEMENT   OF   APPLICANTS. 

Whenever  it  shall  appear  to  the  Committee 
on  Admissions  that  a  willful  misstatement  upon 
a  material  point  has  been  made  to  them  by  an 
applicant  for  admission  or  reinstatement,  they 
shall  report  the  case  to  the  Governing  Com- 
mittee, who  shall,  by  a  two-thirds  vote  of  the 
members  present,  expel  the  member,  or  declare 
the  applicant  ineligible  for  reinstatement,  as 
the  case  may  be. 

ARTICLE  XIII. 

PLACE    OF    BUSINESS — PARTNERSHIPS    AND 
DISSOLUTIONS. 

Section  i.  Every  member  must  have  in  the 
vicinity  of  the  Exchange  a  place  of  business 
other  than  the  Exchange,  where  comparisons 
and  deliveries  may  be  made,  and  where  notices 


20  THE   CHICAGO   STOCK   EXCHANGE 

may  be  served;  and  it  shall  be  the  duty  of 
every  member  to  keep  filed  with  the  Secretary 
a  written  notice  designating  such  place  of  busi- 
ness, and  similarly  to  give  notice  of  any  change 
thereof.  Any  member  neglecting  to  comply 
with  this  rule  may  be  considered  in  default  on 
his  contracts,  and  such  contracts  may  be  closed 
out  according  to  Article  XVII  of  the  By-Laws. 

Sec.  2.  Whenever  a  member  shall  form  a 
partnership  with  another  member  or  person, 
he  shall  immediately  give  written  notice  there- 
of to  the  President,  and  announcement  of  the 
same  shall  be  made  to  the  Exchange  by  the 
presiding  officer,  and  a  notice  of  such  partner- 
ship shall  then  be  posted  in  the  board  room 
for  a  period  of  ten  days. 

Any  member  failing  to  comply  with  this 
Article  shall  be  suspended  at  the  discretion  of 
the  Governing  Committee. 

Sec.  3.  In  like  manner  notice  must  be  given 
of  any  dissolution  of  partnership,  and  it  shall 
be  the  duty  of  the  Secretary  to  keep  a  record 
of  all  partnerships  and  dissolutions. 


CONSTITUTION  21 

ARTICLE  XIV. 

TRANSFER    OF    MEMBERSHIP. 

Any  member  shall  have  the  right  to  transfer 
his  membership  under  the  provisions  of  the  fol- 
lowing sections: 

First.  When  any  member  has  agreed  to  trans- 
fer his  membership,  the  name  of  the  party  to 
whom  he  proposes  to  transfer  it  shall  be  submit- 
ted to  the  Committee  on  Admissions  with  said 
agreement,  and  shall  be  posted  in  the  manner 
specified  in  Section  3  of  Article  V,  and  after  said 
posting  and  upon  the  approval  of  a  majority  of 
the  whole  committee,  the  name  shall  be  reported 
favorably  to  the  Governing  Committee,  as  pro- 
vided in  Section  3  of  Article  V. 

All  contracts,  debts  or  obligations  of  every  de- 
scription, with,  or  to  members  of  the  Exchange, 
of  a  member  who  agrees  to  transfer  his  member- 
ship shall  become  due  and  payable  when  notice 
of  said  agreement  to  transfer  is  posted  upon  the 
bulletin  board  of  the  Exchange,  and  shall  be 
liquidated  and  paid,  as  allowed  by  the  Committee 
on  Arbitration,  out  of  the  funds  of  said  member- 
ship  upon    the   consummation   of  the  transfer 


22  THE   CHICAGO  STOCK   EXCHANGE 

thereof.  No  transfer  to  be  complete  until  the 
proposed  transferee  shall  be  elected  by  the  Gov- 
erning Committee,  and  shall  sign  the  Constitu- 
tion and  By-Laws. 

Second*  When  a  member  dies  owing  the  Ex- 
change or  any  member  thereof,  his  membership 
may  be  disposed  of  by  the  Committee  on  Admis- 
sions, and  after  satisfying  the  claims  of  the  Ex- 
change and  members  thereof,  they  shall  pay  any 
balance  to  the  legal  representatives  of  the  de- 
ceased. In  every  case  where  a  member  is  de- 
prived of  his  membership,  or  declared  ineligible 
for  readmission  by  the  Governing  Committee, 
by  reason  of  any  offense  against  or  under  the 
laws  of  the  Exchange,  his  membership  may  be 
disposed  of  forthwith  by  the  Committee  on  Ad- 
missions. 

Third.  In  no  case  shall  any  transfer  of  mem- 
bership be  consummated  or  permitted  until  all 
dues  to  the  Stock  Exchange  shall  have  been  paid 
in  full,  said  dues  being  hereby  declared  a  prior 
lien  upon  the  proceeds,  to  be  satisfied  in  full  be- 
fore any  distribution  thereof  shall  be  made;  nor 
until  said  transferee  shall  have  been  elected  a 


CONSTITUTION  28 

member  by  the  Governing  Committee  and  shall 
have  signed  the  Constitution  and  By-Laws. 

ARTICLE   XV. 

SUSPENDED    MEMBERS — REINSTATEMENT — 
CLAIMS    OF   CREDITORS,  ETC. 

Section  i.  Any  member  who  fails  to  com- 
ply with  his  contracts,  or  who  becomes  insolvent, 
shall  be  suspended  until  he  has  settled  with  his 
creditors.  And  it  shall  be  the  duty  of  the  pre- 
siding officer  to  give  notice  from  the  chair  of  the 
suspension  of  such  member.  The  Secretary  shall 
record  the  failure  of  such  member  in  a  book 
kept  for  that  purpose.  Such  member  shall  im- 
mediately inform  the  President  in  writing  that 
he  is  unable  to  meet  his  contracts.  In  default  of 
giving  such  information,  the  party,  on  applica- 
tion for  reinstatement,  shall  not  be  entitled  to  a 
reference  of  his  case  to  the  Committee  on  Ad- 
missions unless  two-thirds  of  the  Governing 
Committee  present  shall  vote  in  favor  of  such 
reference. 

Sec  2.  When  a  suspended  member  applies 
for  reinstatement  he  shall  be  required  to  furnish 


24  THE   CHICAGO  STOCK  EXCHANGE 

to  the  Chairman  of  the  Committee  on  Admis- 
sions a  list  of  his  creditors  and  a  statement  of  the 
amounts  owing  and  the  nature  of  the  settlement 
in  each  case.  The  Committee  shall  give  notice 
for  three  consecutive  days,  through  the  presid- 
ing officer  of  the  Exchange,  and  by  posting  the 
same  on  the  bulletin  board,  provided  for  that 
purpose,  of  the  time  and  place  of  the  meeting  to 
consider  the  application  of  the  suspended  mem- 
ber and  the  claims  of  the  creditors.  The  appli- 
cant shall  have  the  right  to  present  his  case  to 
the  Committee  on  Admissions  at  least  three 
separate  times.  In  case  said  committee  shall  so 
determine  they  may  report  favorably  to  the  Gov- 
erning Committee.  In  the  event  of  the  Commit- 
tee on  Admissions  refusing  to  report  favorably 
upon  such  applicant  after  the  third  hearing,  such 
applicant  shall  have  the  right  of  appeal  to  the 
Governing  Committee.  In  either  case  the  Gov- 
erning Committee  may  reinstate  said  member 
by  an  affirmative  vote  of  ten  (lo)  members.  If 
rejected  by  the  Governing  Committee  he  shall 
cease  to  be  a  member  of  the  Exchange,  and  his 
name  shall  forthwith  be  stricken  from  the  roll 
and  his  membership  shall  be  disposed  of  by  the 


CONSTITUTION  25 

Committee  on  Admissions.  Whenever  the  Gov- 
erning Committee  shall  determine  that  a  failure 
of  a  member  has  been  caused  by  his  doing  busi- 
ness in  a  reckless  and  unbusiness-like  manner, 
he  may  be  declared  ineligible  for  reinstatement 
by  a  two-thirds  vote  of  the  entire  Governing 
Committee. 

Sec.  3.  If  any  suspended  member  fails  to  set- 
tle with  his  creditors  and  apply  for  reinstatement 
within  a  year  from  the  time  of  his  suspension, 
his  membership  shall  be  disposed  of  by  the  Com- 
mittee on  Admissions  and  the  proceeds  paid  pro 
rata  to  his  creditors  on  the  Exchange  as  allowed 
by  the  Arbitration  Committee.  The  Governing 
Committee  may,  by  a  vote  of  two-thirds  of  the 
members  present,  extend  the  time  for  settlement 
and  for  application  for  reinstatement  of  such  sus- 
pended member.  No  claims  growing  out  of  trans- 
actions between  partners  shall  be  admitted  to 
share  in  the  proceeds  of  membership  of  one  of 
such  partners  until  after  the  claims  filed  by  other 
creditors  who  are  members  of  the  Exchange  shall 
have  been  satisfied. 

Sec.  4.  Any  creditor  failing  to  file  with  the 
Secretary  of  the  Exchange  a  written  statement 


26  THE   CHICAGO  STOCK   EXCHANGE 

of  his  claim  against  a  member,  prior  to  the  elec- 
tion of  the  transferee  of  such  membership,  shall 
forfeit  all  right  to  a  distributive  share  of  pro- 
ceeds of  such  membership. 

Sec.  5.  No  member  of  the  Exchange  shall 
be  allowed  to  take  as  a  partner  any  suspended 
member  thereof  during  the  period  of  his  sus- 
pension, or  to  form  a  partnership  with  any  in- 
solvent person,  or  with  any  person  who  may 
have  previously  been  a  member  of  the  Exchange, 
and  against  whom  any  member  may  hold  a  claim 
arising  out  of  transactions  made  during  the  time 
of  such  membership,  and  which  has  not  been 
settled  or  released  in  accordance  with  the  laws 
of  the  Exchange. 


ARTICLE  XVI. 

ELECTIONS — QUORUMS — MEMBERS    OF     A     FIRM — 
VOTING,  ETC. 

Section  i.  Each  member  of  the  Exchange 
in  good  standing  shall  be  entitled  to  a  vote  at 
an  election  for  officers. 

Sec   2.     When  the  Exchange    shall    be    as- 


CONSTITUTION  27 

sembled  to  vote  for  any  purpose,  fifty  of  the 
members  shall  be  necessary  to  a  quorum. 

Sec.  3.  But  one  member  of  a  firm  shall  be 
allowed  to  transact  business  in  the  same  security 
at  the  same  time,  or  vote  on  any  question  save 
for  the  election  of  officers. 

Sec.  4.  Except  when  otherwise  provided  in 
the  Constitution  and  By-Laws,  **Roberts  Rules 
of  Order"  shall  be  the  rule  at  all  meetings  of  the 
members  of  the  Exchange  and  the  committees 
thereof. 

ARTICLE  XVIL 

FICTITIOUS   SALES,  BIDS   AND   OFFERS. 

Section  i.  No  fictitious  sales  shall  be  made. 
Any  member  contravening  this  section  shall  be 
suspended  by  the  Governing  Committee. 

Sec  2.  Any  member  who  shall  make  ficti- 
tious or  trifling  bids  or  oilers,  or  who  shall  offer 
to  buy  or  sell  any  stock  or  security  other  than 
Government  bonds,  at  a  less  variation  than  one- 
eighth  of  one  per  cent  shall  be  subject  to  suspen- 
sion, or  such  other  penalty  as  the  Governing 
Committee  shall  impose. 


28  THE   CHICAGO  STOCK   EXCHANGE 

ARTICLE    XVIII. 

PAYMENTS    AND    DELIVERIES    IN    CERTAIN     CASES 
TO    BE    SIMULTANEOUS. 

In  all  deliveries  of  stocks,  bonds,  etc.,  the 
party  delivering  shall  have  the  right  to  require 
the  purchase  money  to  be  paid  at  the  time  and 
place  of  delivery. 


ARTICLE   XIX. 

COMMISSIONS. 

Section  i.  Commissions  shall  be  charged, 
and  paid  under  all  circumstances,  and  upon  all 
transactions,  both  purchases  and  sales,  or  upon 
contracts  for  the  receipts  or  delivery  of  securities. 
Such  commissions  shall  be  calculated  in  all  cases 
upon  the  par  value  of  securities,  and  shall  be  at 
the  rates  hereinafter  named;  and  such  rates  shall 
be  in  each  case  the  lowest  commission  that  may 
be  charged  by  any  member  of  the  Exchange, 
and  shall  be  absolutely  net,  and  free  from  all  or 
any  rebatement,  return,  discount,  or  allowance, 
in  any  shape  or  manner  whatsoever,  or  by  any 
method  or  arrangement  direct  or  indirect.  And 
no  bonus,  percentage,  or  portions  of  the  com- 


CONSTITUTION  29 

missions  so  established,  shall  be  given,  paid,  or 
allowed  directly  or  indirectly,  to  any  clerk  or 
person,  for  business  sought  or  procured  for  any 
member  of  the  Exchange. 

Sec,  2.  On  all  business  for  parties  not  mem- 
bers of  the  Exchange,  including  joint  account 
transactions  in  which  a  non-member  is  inter- 
ested, transactions  for  parties  not  members  of 
the  Exchange  and  for  firms  which  the  Exchange 
member  or  members  are  special  partners  only, 
the  commission  charge  on  stocks  shall  not  be 
less  than  twelve  and  one-half  cents  per  share,  and 
on  bonds  not  less  than  one-eighth  of  one  per 
cent. 

Sec.  3.  Exceptions  to  the  foregoing  rules 
shall  be  made  in  the  following  stocks: 

On  Bank  Stocks  and  all  Stocks  selling  at  and 
over  two  hundred  dollars  per  share,  the  commis- 
sion shall  be  twenty-five  cents  per  share. 

On  all  Stocks  selling  at  and  over  three  hun- 
dred dollars  per  share,  the  commission  shall  be 
fifty  cents  per  share. 

On  all  Stocks  selling  at  and  over  five  hundred 
dollars  per  share,  the  commission  shall  be  one 
dollar  per  share. 


30  THE   CHICAGO  STOCK  EXCHANGE 

On  all  Stocks  selling  in  amounts  of  less  than 
fifty  shares,  the  commission  shall  be  double  the 
usual  commission. 

On  all  Bonds  selling  in  amounts  of  less  than 
five  thousand,  the  commission  shall  be  one-quar- 
ter of  one  per  cent. 

Provided,  that  in  no  case  shall  the  commission 
on  the  purchase  or  sale  of  either  Stocks  or  Bonds 
be  less  than  two  dollars. 

Sec.  4.  The  minimum  commission  on  trans- 
actions between  members  of  the  Exchange  shall 
be  one-half  the  above  named  rates — except  where 
one  member  merely  buys  or  sells  for  another 
(giving  up  his  principal  on  the  day  of  the  trans- 
action) and  does  not  receive  or  deliver  the 
Stock,  in  which  case  the  rates  shall  not  be  less 
than  two  cents  per  share,  provided  that  in  no 
case  shall  the  commission  be  less  than  one  dollar. 

The  commission  upon  Government  Bonds 
shall  be  one-sixteenth  of  one  per  cent  upon  the 
par  value  thereof,  except  as  between  members, 
when  the  rate  shall  be  one-thirty-second  of  one 
per  cent. 

Sec.  5.  Members  suspended  by  the  Govern- 
ing Committee  shall  not,  during  the  time  of  sus- 


CONSTITUTION  81 

pension,  be  entitled  to  have  their  business  trans- 
acted at  members'  rates. 

Sec.  6.  Any  member  violating  this  article  di- 
rectly or  indirecty,  of  which  the  Governing 
Committee  shall  be  the  judge,  shall,  upon  con- 
viction, for  the  first  offense  be  fined  five  hundred 
dollars,  and  shall  be  suspended  for  a  i>eriod  of 
not  less  than  three  months;  and  for  the  second 
offense  shall  be  expelled,  and  his  membership 
disposed  of  by  the  Committee  on  Admissions. 


ARTICLE   XX. 

MEMBERS    GUILTY    OF    FRAUD. 

Should  any  member  be  guilty  of  fraud,  of 
which  the  Governing  Committee  shall  be  the 
judge,  he  shall  upon  conviction  thereof,  by  a 
vote  of  two-thirds  of  the  said  Committee  present, 
be  declared  by  the  President  to  be  expelled,  and 
his  membership  shall  be  disposed  of  by  the  Com- 
mittee on  Admissions. 


32  THE   CHICAGO  STOCK   EXCHANGE 

ARTICLE   XXI. 

OBLIGATION    TO    ABIDE    BY   THE    CONSTITUTION 
AND    BY-LAWS. 

Section  i.  Every  member  shall  within  five 
days  after  his  admission,  and  his  notification 
thereof  by  the  Secretary,  sign  the  Constitution 
and  By-Laws,  thereby  pledge  himself  to  abide 
by  the  same,  and  by  all  subsequent  amendments 
thereof,  and  also  by  all  rules  and  regulations 
then  existing  or  which  may  thereafter  be  adopted. 
In  case  of  sickness  or  absence  from  the  city  pre- 
venting any  member  from  complying  with  the 
requirements  of  this  section,  such  member  shall 
upon  his  first  entrance  to  rooms  of  the  Exchange 
sign  the  Constitution  and  By-Laws,  and  pledge 
himself  as  herein  required,  and  no  member 
shall  be  entitled  to  the  privileges  of  the  floor  un- 
til he  shall  have  so  signed. 

Sec.  2.  Any  member  reported  to  the  Gov- 
erning Committee  for  refusing  to  comply  with 
the  Constitution,  By-Laws,  Rules  or  Regulations 
of  the  Exchange,  or  for  any  violation  thereof, 
shall  be  allowed  an  opportunity  of  being  heard 
before  them,  and  if  said  Committee  decide  that 


CONSTITUTION  33 

the  complaint  is  proved,  they  shall  inflict  such 
penalty  as  may  be  prescribed  by  the  Constitu- 
tion or  By-Laws,  or,  where  no  penalty  is  speci- 
fied, such  as  they  may  deem  proper  according 
to  the  gravity  of  the  offense. 

Sec.  3.  No  expulsion  or  suspension  of  a 
member  shall  affect  the  rights  of  creditors  as 
provided  for  in  the  Constitution  and  By-Laws. 


ARTICLE  XXn. 

LEGAL    INTERFERENCE   WITH    OFFICERS 
AND   COMMITTEES. 

Any  member  of  the  Exchange  who  shall  him- 
self, or  whose  partner  or  partners  shall  apply  for 
an  injunction  or  legal  instrument  restraining  an 
officer  or  committee  of  the  Exchange  from  per- 
forming his  or  its  duties  under  the  Constitution 
and  By-Laws  of  the  Exchange,  shall  by  that  act 
cease  to  be  a  member  of  the  Association,  and  his 
membership  shall  be  disposed  of  by  the  Com- 
mittee on  Admissions. 


34  THE   CHICAGO   STOCK   EXCHANGE 

ARTICLE  XXIII. 

POWER    TO    QUESTION    MEMBERS. 

The  Governing  Committee  shall  have  the  au- 
thority to  ask  any  questions  that  they  may  con- 
sider pertains  to  the  welfare  of  the  Exchange, 
of  any  member  who  may  be  brought  before  said 
Committee  on  any  charge,  and  in  case  such  mem- 
ber shall  refuse  to  answer  such  questions,  or 
shall  answer  the  same  falsely,  he  may  be  sus- 
pended at  the  pleasure  of  the  Governing  Com- 
mittee. 

ARTICLE  XXIV. 

SPECIAL    MEETINGS    OF   THE    EXCHANGE. 

The  Governing  Committee  shall  have  the  pow- 
er to  call  a  special  meeting  of  the  Exchange 
whenever  they  deem  it  necessary,  and  the  Presi- 
dent shall  call  a  Special  Meeting  of  the  Ex- 
change whenever  so  requested  in  writing  by 
Fifty  (50)  members. 

ARTICLE  XXV. 

LIABILITY  OF  THE  EXCHANGE. 

The  Exchange  shall  under  no  circumstances 


CONSTITUTION  35 

contract  or  incur  any  debt  or  liability  unless  there 
shall  be  in  the  hands  of  the  Treasurer  of  the  Ex- 
change, at  the  time  said  debt  or  liability  is  con- 
tracted or  incurred,  funds  specially  set  aside  to 
meet  and  pay  said  debt  or  liability. 


ARTICLE   XXVI. 

REVENUE   OF   THE    EXCHANGE. 

In  case  the  revenue  of  the  Exchange  from  an- 
nual dues  and  fines,  transfer  fees,  listing  fees  and 
interest  arising  from  funds  in  the  Clearing 
House,  shall  be  insufficient  to  meet  the  current 
expenses  of  the  year,  the  Governing  Committee 
shall  levy  an  assessment  equally  upon  all  the 
members  to  supply  the  deficiency. 

ARTICLE  XXVII. 

ALTERATIONS  OF  THE  CONSTITUTION   AND  BY-LAWS. 

All  alterations  of  the  Constitution  and  Bv- 
Laws,  after  a  reference  thereof  to  the  Law  Com- 
mittee, shall  be  made  by  a  vote  of  two-thirds  of 
the  members  of  the  Governing  Committee  pres- 
ent, and  shall  be  submitted  to  the  Exchange,  and 


36  THE   CHICAGO  STOCK   EXCHANGE 

if  not  disapproved  by  fifty  members  in  good 
standing,  within  one  week,  they  shall  stand  as 
the  law  of  the  Association. 

ARTICLE   XXVIII. 

PURCHASE    OF    MEMBERSHIPS. 

Memberships  of  members  desiring  to  retire 
from  the  Exchange  may  be  purchased  by  the 
Exchange  at  such  price  as  the  Finance  Commit- 
tee may  from  time  to  time  determine  until  they 
shall  have  purchased  thirty-four  (34)  member- 
ships. 

ARTICLE  XXIX. 

POWER  OF  GOVERNING  COMMITTEE    TO   SUSPEND. 

Any  member  who  shall  be  guilty  of  miscon- 
duct, or  of  any  act  detrimental  to  the  interest  or 
welfare  of  the  Exchange,  or  of  uncommercial 
conduct,  or  of  conduct  unbecoming  a  broker, 
shall,  after  a  hearing,  be  subject  to  suspension  or 
expulsion,  or  such  other  penalty  as  the  Govern- 
ing Committee  may  impose,  but  no  member 
shall  be  expelled  for  any  cause  save  upon  a  two- 
thirds  vote  of  the  Governing  Committee. 


Amendment  to  Constitution, 

Passed  January  24,  1901. 


ARTICLE  XXIX. 
Amended  to  read  as  follows: 

ARTICLE  XXIX. 

POWER   OF   GOVERNING   COMMITTEE   TO  SUSPEND, 
EXPEL,  OR  IMPOSE  OTHER  PENALTIES. 

Section  i. — A  quorum  of  the  Governing 
Committee  sitting  at  any  regular,  special,  or 
adjourned  meeting,  shall  have  the  power  to 
hear  complaints  against  any  member  who  shall 
be  guilty  of  misconduct  or  of  an}  act  detri- 
mental to  the  interest  or  welfare  of  the  Ex- 
change, or  of  uncommercial  conduct,  or  of  con- 
duct unbecoming  a  broker,  and  a  majority  of 
said  quorum  shall  have  power  to  convict  such 
member  thereof. 

Sec  2. — A  majority  of  such  quorum  of  said 
Committee  shall,  upon  such  conviction,  have 
the  power  to  censure  or  suspend  a  member,  but 


the  affirmative  vote  of  at  least  twelve  members 
of  the  Governing  Committee  shall  be  necessary, 
and  shall  be  empowered  to  expel  a  member. 

Sec.  3. — All  charges  made  to  the  Governing 
Committee  against  any  member  of  the  Associa- 
tion for  any  default,  misconduct,  or  offense, 
shall  be  in  writing,  and  in  duplicate,  and  shall 
state  the  default,  misconduct  or  offense  charged, 
and  the  same  shall  be  signed  by  one  or  more 
members  of  the  Association,  or  by  a  business 
firm,  one  or  more  of  whose  members  shall  be  a 
member  of  the  Association,  or  by  the  chairman 
of  a  committee  of  the  Association. 

Sec.  4. — No  member  shall  be  censured,  sus- 
pended or  expelled,  without  a  hearing  of  the 
charges  against  him  by  the  Governing  Com- 
mittee, nor  without  having  an  opportunity  to 
be  heard  in  his  own  defense.  No  such  hearing 
shall  take  place  until  notice  thereof  has  been 
served  on  the  accused  member,  or  his  firm,  if 
the  charges  apply  to  his  firm,  accompanied  by  a 
copy  of  the  charges  against  him  or  them,  in 
writing;  such  notice  may  be  served  upon  the 
accused  personally  by  the  Secretary,  or  any  of 
his  assistants,  or  by  him  left  with,  or  mailed  to^ 
the  accused  at  his  ordinary  place  of  business  or 
residence, — in  either  of  which  cases  the  notice 
shall  be  considered  sufficient,  and  the  examina- 


tion  may  proceed  whether  the  accused  is  pres- 
ent or  not. 

Sec.  5. — It  shall  be  the  duty  of  the  Govern- 
ing Corrtmittee,  in  case  any  grave  offense  or 
act  by  a  member  detrimental  to  the  Exchange, 
or  any  act  of  dishonesty  on  the  part  of  a  mem- 
ber, shall  come  to  their  knowledge,  either  by 
complaint  or  public  report,  to  cause  a  prelimi- 
nary informal  investigation  to  be  had  by  a 
committee  of  their  number  into  the  truth  or 
falsity  of  the  complaint  or  report,  and  if  the  said 
committee  after  such  investigation  shall  con- 
sider that  the  member  ought  to  be  tried  by  the 
Governing  Committee,  they  shall  so  report  to 
the  Governing  Committee  with  specific  charges; 
whereupon  the  member  thus  implicated  shall 
be  notified  to  appear  before  the  Governing 
Committee  in  manner  as  provided  by  Section  3 
of  this  Article,^ and  if  found  guilty,  the  said 
member  shall  be  suspended,  expelled,  or  other 
penalty  shall  be  imposed  as  hereinbefore  pro- 
vided. 

Sec.  6.— At  the  investigations  before  the 
Governing  Committee,  or  before  any  committee 
of  the  Association,  no  member  shall  be  allowed 
to  be  represented  by  professional  counsel. 


Amendment  to  Constitution^ 
Passed  January  24,  1901. 

ARTICLE  XXX. 
Amended  to  read  as  follows: 
ARTICLE  XXX. 

ACTS    detrimental   TO   THE    EXCHANGE. 

Any  member  of  this  Exchange  who  is  inter- 
ested in,  or  associated  with»  or  whose  office  is 
connected  directly  or  indirectly  by  wire  or 
other  method  or  contrivance,  with  any  organi- 
zation»  firm  or  individual  engaged  in  the  busi- 
ness of  dealing  in  differences  or  quotations  on 
the  fluctuations  in  the  market  price  of  any  com- 
modity or  security  without  a  bona  fide  purchase 
or  sale  of  said  commodity  or  security  in  a  regu- 
lar market  or  Exchange  shall  be  deemed  to 
have  committed  an  act  or  acts 'detrimental  to 
the  interest  and  welfare  of  the  Exchange. 


CONSTITUTION  87 

ARTICLE  XXX. 

ACTS   DETRIMENTAL   TO   THE   EXCHANGE. 

Any  member  of  this  Exchange  who  is  inter- 
ested in,  or  associated  with,  or  whose  office  is 
connected  directly  or  indirectly  by  wire  or  other 
method  or  contrivance,  with  any  organization, 
firm  or  individual  engaged  in  the  business  of 
dealing  in  differences  or  quotations  on  the 
fluctuations  in  the  market  price  of  any  com- 
modity or  security  without  a  bona  fide  purchase 
or  sale  of  said  commodity  or  security  in  a  reg- 
ular market  or  Exchange  shall,  on  conviction 
thereof,  be  deemed  to  have  committed  an  act  or 
acts  detrimental  to  the  interest  and  welfare  of 
the  Exchange. 

ARTICLE  XXXI. 

GRATUITY   FUND. 

Every  member  of  the  Chicago  Stock  Ex- 
change shall  be  subject  to  the  conditions,  and 
entitled  to  partake  of  the  benefits  of  the  plan 
providing  for  the  families  of  deceased  members 
hereinafter  set  forth: 


38  THE   CHICAGO  STOCK   EXCHANGE 

Section  i.  Upon  the  death  of  any  member 
of  the  Exchange,  there  shall  be  levied  and 
assessed  against  each  surviving  member  the 
sum  of  ten  dollars  ($10.00),  which  shall  there- 
upon become  a  due  from  him  to  the  Stock 
Exchange,  and  charged  against  the  member- 
ship of  such  surviving  member,  and  shall  be 
collected  in  the  same  manner  and  have  the 
same  priority  as  all  other  dues  and  fines  are,  or 
may  be  then  collected. 

Sec.  2.  The  faith  of  the  Chicago  Stock  Ex- 
change is  hereby  pledged  to  pay,  within  one 
year  after  proof  of  death  of  any  member,  out 
of  the  money  so  collected,  the  sum  of  four 
thousand  dollars  ($4,000),  or  so  much  thereof 
as  may  have  been  collected,  to  the  persons 
named  in  the  next  section,  as  therein  provid- 
ed, which  money  shall  be  paid  as  a  gratuity 
from  the  surviving  members  of  the  Exchange 
free  from  all  debts,  charges  or  demands  what- 
ever, in  the  manner  following. 

Sec.  3.  Should  the  member  die  leaving  a 
widow,  and  no  descendants,  then  the  sum  shall 
be  paid  to  such  widow  for  her  own  use. 


CONSTITUTION  JW 

Should  the  member  die  leaving  a  widow  and 
also  a  child  or  children,  or  descendants  of  such 
child  or  children  of  said  member,  then  one-half 
shall  be  paid  to  the  widow  for  her  separate 
use,  and  one-half  to  the  children  for  their  use, 
share  and  share  alike,  the  descendants  of  a  de- 
ceased child  taking  the  share  of  their  deceased 
parent  in  equal  parts  among  them:  Provided 
that  the  share  of  minor  children  shall  be  paid 
to  their  guardian. 

Should  the  member  die  leaving  children  or 
their  descendants,  and  no  widow,  then  the 
whole  sum  shall  be  paid  to  the  children  and 
their  descendants,  as  directed  in  the  preceding 
section  to  be  done  with  the  moiety. 

Should  the  member  die  leaving  neither 
widow,  children,  or  their  descendants,  then  the 
whole  sum  shall  be  paid  to  the  same  persons 
who  would,  under  the  laws  of  the  State  of  Illi- 
nois, take  the  same  by  reason  of  relationship  to 
the  deceased  member,  had  he  owned  the  same 
at  the  time  of  his  death;  and  if  there  be  no 
such  person,  then  to  the  other  claimants  for  the 
proceeds  of  the  membership  of  the  deceased, 
under  the  rules  of  the  Stock  Exchange. 


40  THE    CHICAGO   STOCK  EXCHANGE 

In  all  cases  a  certified  copy  of  the  proceed- 
ings in  the  Probate  Court  shall  be  accepted  as 
proof  of  the  rights  of  the  claimants,  be  deemed 
ample  authority  to  the  Stock  Exchange  to  pay 
over  the  money,  shall  protect  the  Exchange  in 
so  doing,  and  shall  release  the  Exchange  for- 
ever from  all  further  claim  or  liability  what- 
soever. 

Sec.  4.  Nothing  herein  contained  shall  ever 
be  taken  or  construed  as  a  joint  liability  of  the 
Exchange  or  its  members  for  the  payment  of 
any  sum  whatever, — it  being  distinctly  under- 
stood that  the  amount  paid  is  a  gratuity.  The 
liability  of  each  member  hereunder,  at  law  or 
in  equity,  being  limited  to  the  payment  to  the 
Stock  Exchange  of  ten  dollars  only  on  the 
death  of  any  other  member,  and  the  liability  of 
the  Exchange  being  limited  to  the  payment  of 
the  sum  of  four  thousand  dollars  (§4,000), 
levied  on  the  death  of  a  member  (or  such  part 
thereof  as  may  be  collected),  after  it  shall  have 
been  collected  under  such  levy  from  the  mem- 
bers, and  not  otherwise. 

Sec.  5.     Nothing  herein  contained  shall  be 


CONSTITUTION  41 

construed  as  constituting  any  estate  in  esse 
which  can  be  mortgaged  or  pledged  for  the 
payment  of  any  debts;  but  it  shall  be  con- 
strued as  the  solemn  agreement  of  every  mem- 
ber of  the  Stock  Exchange  to  make  a  voluntary 
gift  to  the  family  of  each  deceased  member, 
and  of  the  Exchange  to  collect  and  pay  over 
to  such  family  the  said  voluntary  gift;  it  being 
understood  and  hereby  expressly  declared  that 
the  provisions  of  this  Article  XXXI  of  this 
Constitution  shall  only  be  in  force  in,  and  ap- 
ply to,  cases  of  death  which  shall  take  place 
after  its  adoption. 

Sec.  6  It  is  hereby  made  the  special  duty 
of,  and  enjoined  upon  the  Governing  Commit- 
tee of  the  Exchange,  to  increase  the  surplus 
revenues  of  the  Exchange,  as  far  as  possible, 
by  rigid  economy  of  expenditures,  and  by  in- 
crease of  receipts  in  every  legitimate  way,  for 
the  purpose  of  accumulating  a  fund  to  be 
styled  the  **Gratuity  Fund,"  to  be  administered 
and  applied  as  hereinafter  directed. 

Sec.  7.  The  management  and  distribution 
of  the  Gratuity  Fund  and  the  execution  of  the 
provisions  of  this  Article,  shall  be  under  the 


42  THE   CHICAGO  STOCK  EXCHANGE 

charge  of  the  Finance  Committee  of  the 
Exchange. 

It  shall  be  the  duty  of  said  Finance  Commit- 
tee to  keep  securely  invested  all  moneys  paid 
to  them  for  the  Fund,  together  with  the  annual 
interest  and  the  accretions  arising  from  the 
same.  They  shall  have  power  to  adopt  such 
By-laws  as  they  deem  needful,  subject  to  the 
approval  of  the  Governing  Committee,  and 
they  shall  make  an  annual  report  of  the  condi- 
tion    of  the    Fund  to  the  Exchange. 

On  the  election  of  each  new  member  by 
transfer  or  otherwise,  there  shall  be  levied  and 
collected,  in  addition  to  the  transfer  fee,  the 
sum  of  ten  dollars  (gio.oo),  to  be  paid  into  the 
Gratuity  Fund. 

As  soon  after  the  adoption  of  this  Article  as 
convenience  of  the  Treasurer  will  allow%  the 
Treasurer  of  the  Stock  Exchange  shall  pay  to 
said  Finance  Committee  the  sum  of  five  dollars 
for  each  member  of  the  Exchange  yearly,  said 
payment  to  be  charged  against  each  member 
and  collected  with  his  other  dues  when  they 
next  become  payable. 

Sec  8.     The  provisions  of  this  Article  shall 


CONSTITUTION  43 

not  extend  to  any  member  who  shall  have  sev- 
ered his  connection  with  the  Exchange  by  the 
transfer  of  his  membership,  whether  the  same 
is  made  voluntarily  or  involuntarily,  nor  to  any 
member  who  now  is,  or  hereafter  may  be,  ex- 
pelled by  the  Governing  Committee,  but  shall 
extend  to  suspended  members. 

Sec.  9.  The  membership  of  a  deceased 
member,  from  the  date  of  his  death  until  sold, 
shall  be  subject  to  the  same  assessments,  under 
the  provisions  of  this  article,  as  the  member- 
ships of  the  surviving  members,  during  that 
period. 


BY-LAWS. 


ARTICLE   I. 

HOURS   OF   BUSINESS. 

Section  i.  The  Exchange  shall  be  open  for 
the  transaction  of  business  upon  every  business 
clay  and,  except  as  may  be  changed  by  order  of 
the  Governing  Committee,  shall  be  kept  open 
from  m  a.  m.  until  2  o'clock  p.  m.,  except  on 
Saturdays,  when  it  shall  be  open  from  T^a.  m. 
until  >d-«i.    /  /  (^^,    7<f^' 

Dealings  shall  be  limited  throughout  the  en- 
tire year  to  the  interval  between  the  hours  above 
named,  unless  otherwise  ordered  by  the  Govern- 
ing Committee,  and  a  fine  of  ten  dollars  for  each 
offense  shall  be  imposed  upon  any  member  who 
shall  directly  or  indirectly  make  any  transactions 
in  Stocks  or  other  Securities  before  or  after  those 
hours,  in  the  Exchange  or  its  vicinity. 
Sec.  2.  The  Exchange  shall  not  be  closed  at 
any  time,  save  as  hereinabove  provided,  except 


BY-LAWS  45 

by  a  vote  by  ballot  of  two-thirds  of  the  mem- 
bers of  the  Exchange  present  at  a  meeting  to  be 
called  for  that  purpose.  While  so  closed  the 
same  penalty  shall  apply  to  dealings  outside  of 
the  Exchange  as  during  the  regular  time  of  clos- 
ing. 

ARTICLE   II. 

CALLS. 

The  Governing  Committee  shall  regulate  and 
determine  the  time  and  order  of  the  calls,  and 
shall  post  the  rules  concerning  same  in  the  Ex- 
change. 

ARTICLE  III. 

RECORD   OF   SALES. 

Section  i.  No  person  is  permitted  to  enter 
sales  in  the  books  of  record  except  the  Chair- 
man, the  Clerk,  or  a  member  acting  as  such 
under  the  authority  of  the  Chairman.  No  alter- 
ation in  the  record  shall  be  made  except  with  the 
consent  of  the  Exchange  while  it  is  in  session, 
and  whenever  any  objection  to    the    record    is 


46  THE   CHICAGO  STOCK  EXCHANGE 

made  the  objection  shall  be  held  in  abeyance  if 
either  of  the  members  to  the  transaction  is  ab- 
sent. 

Sec  2.  The  record  of  sales  at  the  regular 
calls  shall  be  closed  immediately  on  their  ad- 
journment. A  separate  book  shall  be  provided 
to  record  sales  made  in  the  room  after  the  calls. 
Sales  between  members  made  outside  the  Ex- 
change shall  not  be  recorded  in  the  books  of  the 
Exchange. 

Sec.  3.  Any  member  altering  or  tampering 
with  the  books  of  record  of  sales  shall  be  fined 
one  hundred  dollars  and  be  suspended  at  the 
pleasure  of  the  Governing  Committee. 

ARTICLE  IV. 

BIDS    AND    OFFERS, 

All  offers  to  buy  or  sell  securities  made  and  ac- 
cepted shall  be  binding,  and  all  bids  and  offers 
remain  in  full  force  unless  a  member  audibly  an- 
nounces that  he  is  out  of  the  market,  but  a  sale 
shall  take  all  bids  and  offers  off  of  the  floor.  In 
all  offers  to  buy  or  sell  the  amount  shall  be 
stated,  but  if  no  amount  is  named  it  shall  be  con- 


BY-LAWS  47 

sidered  to  be  for  $10,000  of  par  value  of  bonds 
or  100  shares  of  stocks.  No  offer  to  buy  or  sell 
a  specific  lot  shall  take  precedence  of  an  offer 
to  buy  or  sell  a  different  lot. 

Offers  to  buy  or  sell  shall  be  entitled  to  the 
floor  in  the  following  order: 

First  Bids,  ''seller  three  days"  and  offers  to 
sell,  "buyer  three  days"  shall  take  precedence  of 
cash  and  regular. 

Second.  Cash  and  regular.  "Cash''  meaning 
for  delivery  on  day  of  sale;  "regular"  meaning 
for  delivery  on  the  next  business  day.  offers  to 
buy  or  sell  on  longer  options  than  three  days 
may  be  made  at  the  same  time  with  offers  to  buy 
or  sell  "buyer  or  seller  three." 

Third.  An  offer  to  buy  on  seller's  option,  or 
to  sell  on  buyer's  option,  the  longest  option 
shall  have  precedence. 

Fourth.  In  offers  to  buy  on  buyer's  option, 
or  sell  on  seller's  option,  the  shortest  option 
shall  have  precedence.  No  other  bids  or  offers 
shall  be  permitted  to  have  any  standing  upon  the 
floor. 

In  bids  or  offers  no  fractions  of  less  than  one- 


48  THE   CHICAGO  STOCK   EXCHANGE 

eighth  per  cent  or  one-eighth  of  a  dollar  are  per- 
mitted, except  in  the  case  of  Government  bonds. 

In  all  offers  to  buy  or  sell  during  a  call  when- 
ever the  words  "the  most,"  "the  lowest,"  "all  I 
have,"  "all  I  want,"  or  others  of  the  same  import 
are  used,  they  remain  binding  on  the  member 
while  the  security  remains  before  the  Exchange. 
Any  variance  from  the  terms  applying  to  amount 
or  price  (but  not  to  time),  subjects  a  member  to  a 
fine  of  one  dollar,  and  any  transaction  made  with 
him  in  consequence  of  his  original  declaration, 
or  which  may  be  affected  by  his  subsequent 
change  from  it,  may  be  cancelled  at  the  option 
of  the  other  party.  This  rule  also  applies  when 
a  bid  or  an  offer  is  made  for  another  member. 

Any  member  requesting  a  stock  called,  is  en- 
titled to  the  market  on  that  particular  stock  on 
the  terms  and  time  first  proposed  by  him,  if  he 
make  a  prompt  bid,  or  offer,  or  both,  although 
in  the  tirst  moment  he  may  have  been  antici- 
pated. This  preference,  however,  is  lost  the  mo- 
ment he  varies  his  bid  or  offer  in  any  way. 

No  party  to  a  contract  shall  be  compelled  to 
accept  a  principal  other  than  the  member  offer- 
ing to  contract,  unless  the  name  proposed  to  be 


BY-LAWS  49 

substituted  shall  be  satisfactory,  or  shall  be  de- 
clared at  the  time  of  making  the  offer. 

No  sale  of  securities  shall  be  made  on  which 
a  deposit  shall  be  offered  as  the  limit  of  liability. 

Any  member  guilty  of  dealing,  or  offering  to 
deal,  with  a  person  not  a  member,  in  the  rooms 
of  the  Exchange,  shall  be  fined  fifty  dollars,  with- 
out excuse  or  appeal,  and  for  a  repetition  of  the 
offense  he  shall  be  suspended  for  a  term  not  ex- 
ceeding sixty  days. 


ARTICLE    V. 

TRANSACTIONS  ON  TIME — INTEREST. 

Section  i.  Sales  and  purchases  on  time  are 
not  to  be  made  over  sixty  days. 

Sec.  2.  All  offers  to  buy  or  sell  stocks  be- 
yond three  days  shall  bear  interest;  interest  to 
be  charged  to  date  of  payment  only. 

All  offers  to  buy  or  sell  bonds  shall  bear  in- 
terest to  date  of  payment  of  same. 

Sec.  3.  In  all  contracts  on  time  made  at  the 
option  of  the  buyer  or  seller  one  day's  notice 
shall  be  given  before  securities  can  be  delivered 


60  THE   CHICAGO  STOCK  EXCHANGE 

or  demanded,  and  such  notice  shall  be  given  at 
or  before  i  o'clock  p.  m. 

Sec.  4.  In  all  time  bargains  the  rate  of  in- 
terest shall  be  six  per  cent,  to  be  calculated  by 
days  according  to  bank  usage. 

Sec.  5.  The  accrued  interest  on  all  bonds, 
except  the  bonds  of  the  United  States  and  the 
District  of  Columbia,  shall  go  to  the  seller.  Trad- 
ing in  all  bonds  on  which  the  interest  shall  have 
been  defaulted  shall  be  flat,  but  all  defaulted 
coupons  must  be  attached  to  the  bonds. 

ARTICLE    VI. 

SETTLEMENT   OF   DISPUTES   AS   TO  PURCHASE   OR 
SALE    OF   SECURITIES. 

Section  i.  Whenever  there  is  a  disputed 
claim  for  the  purchase  or  sale  of  a  security  made 
during  the  calls  of  the  Exchange,  the  Chairman 
shall  decide  who  shall  be  entitled  to  the  same, 
and  his  decision  shall  be  final. 

In  case  of  a  dispute  after  calls  the  question 
shall  be  settled  by  a  vote  of  the  members  present 
who  heard  both  parties  to  the  transaction,  and  in 
case  of  proof  of  any  member    voting    without 


BY-LAWS  61 

knowledge  of  the  facts,  said  member  shall  be 
liable  to  discipline  for  uncommercial  conduct. 

Sec.  2.  In  any  disagreement  between  mem- 
bers, growing  out  of  the  purchase  and  sale  of  a 
security  or  securities,  as  soon  as  the  same  is  as- 
certained, if  not  settled  by  mutual  consent,  the 
money  difference  shall  be  established  forthwith 
by  a  purchase  or  sale  by  an  officer  of  the  Ex- 
change. 

Sec.  3.  Whenever  a  buyer  or  seller  fails  to 
get  the  name  of  the  other  party  to  a  transac- 
tion, he  shall  give  notice  at  all  the  calls  of  the 
Exchange  on  the  day  of  the  alleged  transaction, 
and  if  he  fails  to  find  the  party  he  shall  cause 
the  security  or  securities  to  be  purchased  or  sold 
through  an  officer  at  the  first  call  of  securities 
on  the  following  day  for  account  of  whom  it  may 
concern.  In  any  case  of  this  kind  growing  out 
of  an  alleged  transaction  made  at  or  after  the 
afternoon  call,  notice  shall  be  given  in  the  Ex- 
change and  at  the  first  regular  call  on  the  fol- 
lowing day,  when,  if  the  party  cannot  be  found, 
the  alleged  transaction  shall  be  closed  at  the  next 
regular  call  in  the  manner  prescribed  above. 


52  THE   CHICAGO   STOCK   EXCHANGE 

ARTICLE  VII. 

HOURS  FOR  THE  DELIVERY  OF  SECURITIES — 
PAYMENTS. 

Section  i.  All  deliveries  of  securities  must 
be  made  between  ii  a.  m.  and  1:30  o'clock  p. 
m.,  except  on  Saturdays,  when  they  shall  be 
made  between  the  hours  of  10:30  a.  m.  and  11 145 
a.  m.,  or  the  buyer  may  demand  that  they  shall 
lie  over  until  the  next  day  without  interest,  when 
they  shall  be  delivered  before  10:30  o'clock  a. 
m.,  and  when  deliveries  are  not  made  by  that 
time  the  contract  may  be  closed  under  the  rule, 
after  due  notice  to  the  defaulting  party,  as  pro- 
vided in  Article  XVII  of  the  By-Laws.  Such 
notice  must  be  given,  however,  not  later  than 
10:45  o'clock  a.  m.,  and  the  contract  must  be 
closed  without  delay,  unless  the  time  for  so  do- 
ing be  extended  by  mutual  consent.  In  all  cases 
lawful  money  or  certified  checks  on  National  or 
State  banks  may  be  demanded  in  payment  of  all 
securities  delivered.  When  delivery  day  for  se- 
curities bought  or  sold  "regular"  falls  on  Satur- 
day, deliveries  shall  be  made  the  following  busi- 
ness day. 


Alterations  to  By-Laws, 
Passed  January  i8,  1899. 

ARTICLE  VIL 

Altering  Section  i,  and  make  it  read  as  fol- 
lows: 

All    deliveries   of   securities   must  be  made 
between  11  a.  m.  and  1  p.  m. 


Altering  Section  2  and  make  it  read  as  fol- 
lows: 

This  rule  shall  apply  to  borrowed  and 
loaned  securities.  When  a  sale  has  been  made 
for  cash  after  i  o'clock  p.  m.  the  seller  shall 
have  one  hour  from  the  time  of  making  said 
sale  to  make  his  delivery. 


Alterations  to  By-Laws, 
Passed  March   i.    1900. 


ARTICLE  VIIL 

Altering  Section  3,  and  make  it  read  as 
follows: 

Section  3.  Powers  of  attorney  or  substitu- 
tion signed  by  trustees,  guardians,  infants, 
executors,  administrators  or  attorneys,  or  b}- 
any  corporation  or  officers  of  same,  shall  not 
be  a  good  delivery.  Detached  powers  of  attor- 
ney or  substitution  must  be  attested  by  a  notary 
public  under  seal. 


BY-LAWS  53 

In  the  absence  of  any  notice  or  agreement, 
the  contract  shall  continue  without  interest  until 
the  following  day,  when  the  same  rule  shall  ap- 
ply. In  every  case  of  non-delivery,  however,  the 
party  in  default  shall  be  liable,  in  addition,  for 
the  damages  that  may  accrue. 

Sec.  2.  This  rule  shall  apply  to  borrowed 
and  loaned  securities.  When  a  sale  has  been 
made  for  cash  after  i  o'clock  p.  m.,  the  seller 
shall  have  until  1 130  p.  m.  to  make  his  delivery. 

ARTICLE  VIII. 

DELIVERY  OF  STOCK  BY  CERTIFICATE  AND  POWER 

Section  i.  In  the  delivery  of  stock  of  which 
but  one  transfer  in  a  day  is  allowed,  the  receiver 
shall  have  the  option  of  receiving  said  stock  bj 
certificate  and  power  irrevocable  in  the  name  of, 
witnessed  or  guaranteed  by  a  member  of  the  Ex- 
change, or  a  firm  represented  at  the  Exchange, 
resident  or  doing  business  in  Chicago,  or  by 
transfer  thereof.  In  the  case  of  powers  of  at- 
torney or  substitution  not  executed  or  witnessed 
by  a  member  of  the  Exchange,  or  a  firm  repre- 
sented at  the  Exchange,  the  endorsement  there- 


54  THE   CHICAGO   STOCK   EXCHANGE 

on  of  a  member  or  of  such  a  firm  is  to  be  con- 
sidered a  guaranty  of  the  correctness  of  the  sig- 
nature of  the  party  executing  the  same. 

Sec.  2.  In  all  transactions  exceeding  one 
hundred  shares,  where  the  delivery  is  by  certifi- 
cate and  power,  the  purchaser  shall  have  the 
right  to  require  the  delivery  to  be  in  certificates 
of  not  more  than  one  hundred  shares  each. 

Sec.  3.  Powers  of  attorney,  or  substitution 
signed  by  trustees,  guardians,  infants,  executors, 
administrators  or  attorneys,  shall  not  be  a  good 
delivery.  Detached  powers  of  attorney  or  sub- 
stitution must  be  attested  by  a  notary  public  un- 
der seal. 

ARTICLE   IX. 

TRANSFER  BOOKS  CLOSED  BY  LEGAL  IMPEDIMENT 
— HOW  DELIVERIES  SHALL  BE  MADE. 

Whenever  the  transfer  books  of  any  company 
shall  be  closed  by  any  legal  impediment,  so  as  to 
render  their  being  open  again  uncertain,  then 
the  deliveries  of  stock  of  such  company  in  satis- 
faction of  contracts  shall  be  made  by  certificate 
and  power  of  attorney  irrevocable,  and  notarial 
acknowledgment  and    seal,  and    containing  as- 


BY-LAWS  55 

signment  and  bill  of  sale ;  the  papers  to  be  satis- 
factory to  the  recipients,  or  passed  upon  by  the 
Law  Committee. 


ARTICLE    X. 

IRREGULARITIES  IN  DELIVERIES. 

Reclamations  for  irregularities  in  deliveries  of 
stocks  or  bonds,  when  such  irregularities  do  not 
affect  their  validity,  but  only  currency  in  market, 
will  not  be  considered  unless  made  within  ten 
days  from  the  day  of  delivery. 


ARTICLE  XL 

STOCKS  WHEN  DUE — HOLIDAYS. 

Section  i.  All  purchases  and  sales  shall  be 
settled  for  the  next  business  day  unless  expressed 
to  the  contrary. 

Sec.  2.  All  contracts  falling  due  on  Sunday 
or  on  such  holidays  as  are  observed  by  the  banks 
shall  be  settled  on  the  preceding  day;  and  where 
two  holidays  occur  on  consecutive  days,  as  where 
Sunday  immediately  precedes  or  follows  a  legal 


66  THE  CHICAGO   STOCK  EXCHANGE 

holiday,  contracts  falling  due  upon  the  first  or 
second  of  such  holidays  shall  be  settled  upon  the 
first  preceding  business  day. 


ARTICLE  XII. 

CONTRACTS  MATURING  DURING  THE  CLOSING  OF 
TRANSFER  BOOKS — DUE  BILLS. 

All  contracts  in  stocks  falling  due  during  the 
regular  closing  of  the  transfer  books  of  any  com- 
pany shall  be  settled  at  maturity  by  the  delivery 
of  a  certificate  and  power  of  attorney,  as  defined 
in  Section  i  of  Article  VIII  of  the  By-Laws;  and 
contracts  at  the  option  of  the  buyer,  or  contracts 
at  the  option  of  the  seller,  may  be  notified  for  set- 
tlement as  if  the  books  were  open:  and  in  case 
the  books  are  closed  for  a  dividend,  the  party  en- 
titled thereto  shall  receive  a  due-bill  therefor, 
signed  or  endorsed  by  the  seller  of  the  stock; 
but  the  party  entitled  to  the  dividend  shall  have 
the  right  to  require  a  deposit  in  a  trust  company, 
or  bank,  payable  to  the  joint  order  of  the  pur- 
chaser and  seller,  of  the  amount  of  such  due- 
bill. 


BY-LAWS  57 

ARTICLE  XIII. 

DIVIDENDS. 

Section  i.  On  the  day  of  the  closing  of  the 
transfer  books  of  any  stock  for  a  dividend,  trans- 
actions in  such  stock,  for  cash,  shall  be  **divi- 
dend  on''  up  to  the  time  officially  designated  for 
the  closing  of  the  books.  All  transactions  other 
than  for  cash  shall  be  ''dividend  off." 

Sec.  2.  When  a  dividend  is  declared  on  a  se- 
curity during  the  pendency  of  a  contract,  the 
seller  shall  collect,  hold,  allow  interest  on,  and 
pay  the  same  to  the  buyer  on  the  settlement  of 
the  contract. 

Sec.  3.  Members  may  charge  one  per  cent 
for  collecting  and  paying  dividends,  but  where  a 
scrip  or  stock  dividend  has  been  declared  by  a 
company  the  one  per  cent  shall  be  upon  the 
market  value,  and  not  upon  the  par  value  of  the 
scrip  or  stock. 

Sec.  4.  No  offers  to  buy  or  sell  dividends 
on  stock  shall  be  made  publicly  on  the  Ex- 
change. 


58  THE   CHICAGO   STOCK   EXCHANGE 

ARTICLE  XIV. 

BONDS. 

Only  bonds  of  the  denomination  of  one  thou- 
sand dollars  or  five  hundred  dollars  are  a  good 
delivery  for  sales  of  five  hundred  dollars  or  its 
multiple. 

ARTICLE   XV. 

OPERATING  FOR  ANOTHER  MEMBER. 

Section  i.  A  member  bidding  for,  or  offer- 
ing stocks  for  another  member,  must  mention 
his  name  with  the  bid  or  offer,  or  be  responsible 
for  the  contract.  The  party  accepting  the  name 
must  compare  with  the  principal  before  3  p.  m. 
on  the  same  day,  or  else  all  claim  on  said  prin- 
cipal shall  be  forfeited.  If  the  name  of  a  prin- 
cipal is  accepted  subsequent  to  the  sale,  the  brok- 
er giving  up  said  name  shall  be  responsible  for 
the  accuracy  of  the  contract  whether  comparison 
is  made  or  not. 

Sec.  2.  Any  member  who  shall  execute  any 
order  for  the  purchase  or  sale  of  stocks  for  any 
person  in  the  employ  of  another  member  without 


BY-LAWS  59 

first  obtaining  the  consent  of  the  employer,  shall 
for  the  first  offense  be  fined  fifty  dollars,  and  for 
the  second  offense  shall  be  suspended  at  the 
pleasure  of  the  Governing  Committee. 

ARTICLE  XVI. 

MUTUAL  DEPOSITS  ON  CONTRACTS. 

Section  i.  In  any  contract  either  party  may 
call  at  any  time  during  the  continuance  of  the 
same  for  a  deposit  of  ten  dollars  per  share  upon 
the  par  value  of  the  securities  bought  and  sold; 
and  whenever  the  market  price  of  the  securities 
shall  change  so  as  to  reduce  the  margin  of  said 
deposit  either  way  below  the  ten  dollars,  either 
party  may  call  for  a  deposit  sufficient  to  restore 
the  margin  to  ten  dollars,  and  this  may  be  repeat- 
ed as  often  as  the  margin  may  be  so  reduced.  In 
all  cases  where  deposits  are  called  they  shall  be 
made  within  one  banking  hour  from  the  time  of 
such  call. 

Sec.  2.  In  case  either  party  shall  fail  to  com- 
ply with  the  demand  for  a  deposit  in  accordance 
with  the  provisions  of  this  Article,  the  party  call- 
ing, after  having  given  due  notice,  may  report  the 


60  THE    CHICAGO   STOCK   EXCHANGE 

default  to  an  officer  of  the  Exchange,  who  shall 
re-purchase  or  re-sell  the  security  forthwith  in 
the  Exchange,  and  any  difference  that  may  ac- 
crue shall  be  paid  over  to  the  party  entitled 
thereto.  The  notice  above  referred  to  shall  be 
either  personal,  or  shall  be  left  in  writing  at  the 
office  of  the  party  to  be  notified,  or  in  case  he 
has  no  office,  then  by  public  announcement 
whenever  the  Exchange  may  be  in  session. 

Sec.  3.  Unless  otherwise  agreed  upon  be- 
tween the  parties,  the  place  of  deposit  for  mar- 
gins for  the  security  of  purchases  and  sales  shall 
be  the  Clearing  House  of  the  Exchange,  the 
Manager  of  which  shall  be  authorized  to  issue 
special  receipts  for  same. 

ARTICLE  XVII. 

DEFAULT — CLOSING  CONTRACTS  UNDER  THE  RULE 

Should  any  member  neglect  to  fulfill  his  con- 
tract on  the  day  it  becomes  due,  the  party  or 
parties  contracting  with  him  shall,  after  giving 
notice  as  required  by  Section  2  of  the  preceding 
Article,  employ  an  officer  of  the  Board  to  close 
the  same  forthwith  in  the  Exchange  by  purchase 


BY-LAWS  61 

or  sale  as  the  case  may  require,  unless  the  price 
of  settlement  has  been  agreed  upon  by  the  con- 
tracting parties.  In  case  of  a  failure  of  a  creditor 
to  close  the  contract  as  above,  the  price  shall  be 
fixed  by  the  price  current  at  the  time  such  con- 
tract ought  to  have  been  closed  under  the  rule. 
In  all  cases  where  an  Officer  may  be  directed  to 
buy  or  sell  securities  under  this  rule,  the  name 
of  the  member  defaulting,  as  well  as  that  of  the 
member  giving  the  order,  shall  be  announced. 
No  order  for  the  purchase  or  sale  of  securities 
under  this  rule  shall  be  executed  unless  made  out 
in  writing  over  the  signature  of  the  party  giving 
the  order,  who  shall  state  the  reason  therefor; 
and  it  shall  be  the  duty  of  the  Officer  who  ex- 
ecutes the  order  to  endorse  thereon  the  name  of 
the  purchaser  or  seller,  the  price  and  the  hour  at 
which  the  contract  is  closed,  and  hand  the  same 
to  the  Secretary  of  the  Board,  who  shall  within 
twenty-four  hours  ascertain  whether  the  party 
for  whose  account  the  order  was  given  has  paid 
the  difference,  if  any,  arising  from  the  transac- 
tion; if  not,  the  Secretary  shall  report  the  de- 
fault to  the  President.  The  duty  devolved  upon 
the  Officers  of  the  Exchange  under  this  rule 


62  THE   CHICAGO  STOCK   EXCHANGE 

shall  be  performed  without  charge.  No  party 
shall  be  permitted  to  supply  offers  to  buy  or  sell 
securities  closed  for  his  account  under  the  rule; 
and  when  a  contract  is  closed  under  this  rule  any 
action  of  the  defaulter,  direct  or  indirect,  by 
which  the  prompt  fulfillment  of  such  contract  is 
delayed,  hindered  or  evaded,  to  the  detriment  of 
the  other  contracting  party,  shall  subject  the  of- 
fending party  to  suspension  for  not  less  than 
thirty  days,  in  the  discretion  of  the  Governing 
Committee,  by  a  vote  of  two-thirds  of  the  mem- 
bers present  at  the  meeting.  When  contracts 
are  closed  out  under  the  rule,  any  member  sup- 
plying the  bid  or  offer,  and  not  duly  receiving  or 
delivering  the  stock,  as  the  case  may  be,  renders 
himself  liable  to  prosecution  under  this  Article. 
Should  any  stock  thus  sold  not  be  delivered  un- 
til the  next  day,  the  contract  shall  continue,  but 
the  defaulting  party  shall  be  liable  to  pay  such 
damage  as  may  be  assessed  by  the  Arbitration 
Committee.  The  same  rules  as  to  notice,  time 
and  place  that  govern  defaults  in  other  contracts 
shall  apply  to  borrowed  securities,  which  on  non- 
delivery or  receipt,  must  be  borrowed  or  loaned 
in  open  market,  except  in  case  of  actual  default 


Alteration  to  By-Laws, 
Passed  August  27,    1902. 


ARTICLE  XVIIL 
Altering  to  read  as  follows: 

ARTICLE  XVIIL 

ADVERTISING   STOCKS,    ETC. 

Members  advertising  Stocks  or  Bonds  on 
either  the  Regular  or  Unlisted  list  of  the  Ex- 
change must  call  attention  by  asterisk  and  foot 
note  to  the  fact  that  the  said  stocks  or  bonds 
are  listed  on  The  Chicago  Stock  Exchange; 
under  a  penalty  of  Fifty  Dollars  for  the  first 
offense,  and  for  the  second,  suspension,  at  the 
pleasure  of  the  Governing  Committee. 


BY-LAWS  68 

in  receiving  or  delivering  after  notice  to  close  the 
loan;  then  the  same  are  to  be  bought  or  sold,  as 
the  case  may  be,  for  account  of  the  defaulter  in 
the  manner  provided  in  this  Article. 

ARTICLE  XVIII. 

ADVERTISING  STOCKS,  ETC. 

No  member  shall  have  the  right  to  advertise 
by  circular,  or  in  the  papers,  or  in  any  other  man- 
ner, any  particular  stocks  or  bonds  (government 
securities  excepted)  wnich  are  dealt  in  at  the  Ex- 
change, under  a  penalty  of  fifty  dollars  for  the 
first  offense,  and  for  the  second,  suspension,  at 
the  pleasure  of  the  Governing  Committee. 

ARTICLE   XIX. 

APPLICATION  TO  PLACE  STOCKS,  ETC.,  ON  THE  LIST 

Section  i.  All  applications  for  placing  se- 
curities on  the  regular  list  shall  be  made  to  the 
Committee  on  Stock  List  in  writing,  and  signed 
by  the  parties  desiring  to  have  the  securities 
listed. 

Sec.  2.     If  a  stock,  the  application  must  state 


64  THE   CHICAGO  STOCK  EXCHANGE 

the  amount  of  authorized  capital,  which  in  every 
case  must  be  not  less  than  $200,000,  the  par  value 
of  shares,  the  number  of  shares  issued,  v^^hether 
dividend  paying,  and  if  so,  time  and  place  of  divi- 
dend, the  address  of  the  transfer  ofifice  or  offices, 
the  amount  of  funded  or  floating  debt,  etc.,  all 
of  v^^hich  must  be  certified  to  by  the  Officers  with 
the  seal  of  the  company  attached. 

Sec.  3.  If  a  bond  or  loan,  the  appHcation 
must  state  the  amount  authorized,  which  in  every 
case  must  be  not  less  than  $200,000,  the  amount 
outstanding,  when  due,  percentage  of  interest, 
when  and  where  payable,  whether  taxable, 
whether  guaranteed,  and  by  whom,  name  of  trus- 
tee, if  any,  etc. 

Sec.  4.  If  the  Stock  List  Committee  approve 
the  application,  they  shall  report  to  the  Govern- 
ing Committee  for  final  action. 

Sec.  5.  A  charge  of  one  hundred  dollars  will 
be  made  in  all  cases  for  listing  either  stock  or 
bonds,  to  be  paid  to  the  Secretary  of  the  Ex- 
change before  the  security  shall  be  placed  upon 
the  official  list  of  the  Exchange. 

Sec   6.     All  applications  for  placing  securities 


BY-LAWS  05 

on  the  free  list  shall  be  made  in  writing  by  a 
member  of  the  Exchange,  and  after  approval  by 
the  Stock  List  Committee,  shall  be  submitted  to 
the  Governing  Committee,  and  if  approved  by 
the  latter  Committee  shall  be  placed  upon  said 
list  without  charge. 


ARTICLE  XX. 

REGISTRY  OF  STOCKS. 

The  Exchange  will  not  call  or  deal  in  any 
active  speculative  stock  of  any  company,  a  reg- 
istry of  whose  stock  is  not  kept  in  some  responsi- 
ble bank  or  trust  company,  or  other  satisfactory 
agency,  and  which  shall  not  give  public  notice 
at  the  time  of  establishing  such  registry  of  the 
number  of  shares  so  entrusted  to  be  registered, 
and  which  shall  not  give  at  least  thirty  days*  no- 
tice through  the  newspapers,  and  in  writing  to 
the  President  of  the  Exchange,  of  any  intended 
increase  of  the  number  of  shares,  either  direct  or 
through  the  issue  of  convertible  bonds,  and 
which  shall  not  at  the  same  time,  give  notice  of 
the  object  for  which  such  issue  of  stock  or  bonds 
is  to  be  made. 


bb  THE   CHICAGO  STOCK   EXCHANGE 

ARTICLE  XXI. 

DUES  AND  FINES — PENALTIES    FOR  NON-PAYMENT. 

Section  i.  The  dues  of  all  members  of  the 
Exchange  shall  be  payable  in  advance,  on  May 
1st,  of  each  year,  and  shall  be  such  a  sum  as  the 
Governing  Committee  may  fix  at  their  monthly 
meeting  in  April,  immediately  preceding  May 
1st. 

Sec  2.  Any  member  who  shall  neglect  to 
pay  his  fines,  dues  or  assessments  for  three 
months  after  they  become  payable,  shall,  after 
due  notice,  be  suspended  until  they  are  paid;  if 
not  paid  at  the  end  of  one  year  he  shall  cease  to 
be  a  member,  and  his  membership  may  be  dis- 
posed of  by  the  Committee  on  Admissions. 

ARTICLE  XXII. 
penalties  for  misconduct. 

Section  i.  Any  member  guilty  of  indeco- 
rous language  or  conduct  towards  the  Presiding 
Officer  or  a  member,  or  who  shall  be  guilty  of 
conduct  subversive  of  good  order  and  decorum, 
or  of  any  act  or  acts  whereby  the  personal  com- 


BY-LAWS  67 

fort  or  safety  of  other  members  is  seriously  inter- 
fered with,  or  who  shall  smoke  or  eat  in  the  Ex- 
change room  during  the  hours  the  Exchange  is 
open  for  business,  may  be  fined  at  the  discretion 
of  the  Presiding  Officer  in  a  sum  not  exceeding 
ten  dollars,  without  excuse  or  appeal,  or  may, 
upon  complaint  made,  be  summoned  before  the 
Governing  Committee,  who  may  suspend  him  for 
a  period  of  not  more  than  thirty  days. 

Sec.  2.  Any  member  interrupting  the  Pre- 
siding Officer,  while  calling  stocks,  by  speaking^ 
or  otherwise,  may  at  the  discretion  of  the  Pre- 
siding Officer  be  fined  not  less  than  twenty-five 
cents  for  each  offense,  for  which  there  shall  be 
no  excuse  or  appeal. 

Sec.  3.  The  making,  or  offering  to  make,  a 
bet  on  the  floor  of  the  Exchange  is  an  act  det- 
rimental to  the  interest,  and  welfare  of  the  Ex- 
change, and  is  prohibited. 

ARTICLE  XXIII. 

SPECIAL  MEETINGS  OF  THE  EXCHANGE. 

Section  i.  When  any  special  meeting  of  the 
Exchange  shall  be  appointed,  the  date  of  such 


00  THE    CHICAGO   STOCK   EXCHANGE 

meeting  shall  be  publicly  announced  at  a  regular 
session  of  the  Exchange  by  the  Chairman,  and 
notice  of  the  same  posted  in  the  rooms  of  the 
Exchange,  for  at  least  twenty-four  hours  prior  to 
the  meeting. 

Sec.  2.  No  notice  shall  be  taken  of  any  reso- 
lution or  resolutions  unless  submitted  in  writing. 

Sec.  3.  No  member  shall  speak  more  than 
twice  on  any  question  under  discussion  by  the 
Exchange  without  permission  from  the  Presiding 
Officer,  nor  shall  any  member  interrupt  another 
while  speaking. 

Sec.  4.  The  Presiding  Officer  shall  not  par- 
ticipate in  any  discussion  arising  in  the  Exchange 
while  occupying  the  chair. 

Sec  5.  The  ayes  and  noes  shall  not  be 
called  for  upon  any  question  excepting  at  the  re- 
quest of  one-fifth  of  the  members  present.  When 
the  ayes  and  noes  are  ordered  the  votes  shall  be 
entered  by  the  Clerk  of  the  Exchange  upon  the 
roll  opposite  the  names  of  the  members  who 
have  voted,  and  such  roll  shall  be  placed  in  the 
Secretary's  desk  for  the  inspection  of  members. 


BY-LAWS  69 

ARTICLE  XXIV. 

ACCESS  TO  THE  MINUTES. 

No  person  shall  have  access  to  the  minutes  of 
the  Exchange,  or  of  the  Governing  Committee, 
except  the  members. 

ARTICLE  XXV. 

COMMUNICATIONS. 

No  communications  shall  be  read  to  the  Ex- 
change without  the  consent  of  the  President  or 
Presiding  Officer. 

ARTICLE  XXVI. 

ADMISSION  OF  STRANGERS  OR  NON-MEMBERS. 

No  person  other  than  a  member  shall  be  per- 
mitted on  the  floor  of  the  Exchange,  except 
strangers  in  the  city;  and  then  only  by  permis- 
sion of  the  President  or  Presiding  Officer. 

Provided,  however,  that  the  Governing  Com- 
mittee may  from  time  to  time  pass  such  rules  as 
may  be  necessary  for  providing  for  allowing  em- 
ployes upon  the  floor  of  the  Exchange. 


70  THE   CHICAGO  STOCK   EXCHANGE 

ARTICLE  XXVII. 

MEETING  OF  THE  GOVERNING  COMMITTEE. 

Section  i.  The  regular  meetings  of  the 
Governing  Committee  shall  be  held  on  the  third 
Wednesday  in  each  month,  at  such  hour  as  the 
President  may  appoint. 

Sec.  2.  The  President,  or  in  his  absence  the 
Vice-President,  shall  preside.  In  the  absence  of 
both,  the  members  present  shall  choose  one  of 
their  number  to  preside. 

Sec  3.  The  Presiding  Officer  shall  not  take 
any  part  in  debate  while  occupying  the  chair. 
He  may  at  any  time  call  a  member  to  the  chair 
temporarily,  in  order  to  take  part  in  a  debate. 

Sec  4.  No  member  shall  speak  more  than 
twice  on  any  one  question  without  the  unani- 
mous consent  of  the  members  present. 

Sec  5.  The  order  of  business  at  the  meet- 
ings of  the  Governing  Committee  shall  be: 

First        Roll  call. 

Second.     Reading  of  minutes. 

Third.       Reports  of  committees. 

Fourth.     Elections. 


BY-LAWS  71 

Fifth         Unfinished  business. 

Sixth.        New  business. 

Sec.  6.  All  elections  shall  be  by  secret  bal- 
lot. 

Sec.  7.  In  elections  for  members  the  candi- 
date shall  be  considered  elected  upon  his  receiv- 
ing the  affirmative  votes  of  three-fourths  of  the 
members  present.  The  vote  to  be  by  secret  bal- 
lot. 

Sec.  8.  No  rejected  candidate  shall  be  eligi- 
ble for  membership  for  six  months  after  his  re- 
jection, without  the  unanimous  consent  of  the 
Governing  Committee. 

ARTICLE   XXVIII. 
claims  against  members. 
No  person  other  than  a  member  shall  have  a 
right  to  file  any  claim  against  any  member  of  the 
Exchange. 

ARTICLE   XXIX. 

DISSOLUTION  AND  CHANGE  OF  FIRMS,  ETC. 

It  shall  be  the  duty  of  every  member  of  the 
Exchange  to  notify  the  Secretary  at  once  of  any 


\\!4\Vt' 


72  THE   CHICAGO  STOCK   EXCHANGE 

change  in  the  constitution  of  his  firm,  and  upon 
failure  to  comply  with  the  provisions  of  this  Arti- 
cle for  a  period  of  ten  days,  he  shall  be  fined 
twenty-five  dollars. 


ARTICLE   XXX. 

AGAINST  UNITING  WITH  OTHER  ORGANIZATIONS. 

No  member  shall  be  directly  or  indirectly,  or 
through  a  partner  or  clerk,  connected  with  any 
other  Exchange,  Board,  or  like  organization  in 
the  State  of  Illinois,  where  stocks,  bonds  or  se- 
curities are  dealt  in.  The  penalty  for  the  first 
offense  shall  be  a  fine  of  fifty  dollars  and  sus- 
pension by  the  Governing  Committee  for  a 
period  of  not  less  than  sixty  days.  And  for 
every  thirty  days  or  fraction  thereof,  after  his 
notification  by  the  Secretary  of  his  suspension, 
that  he  shall  continue  his  connection  with  any 
organization  as  above,  he  shall  be  further  fined 
the  sum  of  fifty  dollars  and  the  term  of  his  sus- 
pension continued  so  long  as  he  shall  continue 
his  connection  with  such  organization  as  above, 
and  until  his  fines  are  paid. 


BY-LAWS  1 3 

ARTICLE    XXXI. 

RULES  GOVERNING  TRADING  IN  **THE  ACCOUNT" 
IN  THE  CLEARING  HOUSE. 

Section  i.  Trading  in  "the  account"  shall 
in  all  cases  be  known  and  regarded  as  trading  in 
conformity  with  the  following  regulations: 

Sec.  2.  Transactions  may  be  made  in  ''the 
account"  in  any  Securities  named  for  that  pur- 
pose by  the  Qearing  House  Committee. 

Sec  3.  All  purchases  and  sales  in  **the  ac- 
count" shall  be  entered  upon  the  blanks  furnished 
by  the  manager  and  selected  for  that  purpose, 
and  said  blanks  properly  filled  out  and  balanced, 
must  be  delivered  to  said  manager  before  9:45 
a.  m.  It  shall  be  the  duty  of  the  manager  of  said 
Clearing  House  as  the  agent  of  all  parties  trad- 
ing in  '*the  account"  to  compare  and  examine 
the  statements  rendered,  and  to  report,  should 
any  errors  be  found,  to  the  parties  making  such 
errors  before  12  m.  Parties  in  error  must  at 
once  proceed  to  adjust  the  same  and  correct  their 
statements.  All  balances  due  from  members  as 
shown  by  the  statements  shall  be  paid  by  certi- 
fied check  drawn  to  the  order  of  the  bank  desig- 


74  THE   CHICAGO  STOCK   EXCHANGE 

nated  for  that  purpose,  and  delivered  to  the 
manager  before  10:15  a.  m.  the  same  day,  (ex- 
cept on  Saturdays,  when  the  balance  must  be 
paid  before  9:45  a.  m.) 

Sec.  4.  On  balances  due  to  members  as 
shown  by  the  statements,  a  draft  for  the  amount 
payable  to  their  own  order  shall  be  drawn  upon 
the  bank  designated  for  that  purpose  and  de- 
livered to  the  manager  before  10:15  a.  m.  (ex- 
cept on  Saturday,  when  they  shall  be  delivered 
before  9:45  a.  m.).  The  manager  shall  cause 
said  draft,  if  correct,  to  be  accepted  by  said  bank 
and  returned  to  the  parties  entitled  thereto  at 
the  manager's  office. 

Sec.  5.  On  or  before  9:45  a.  m.  parties  who 
have  not  borrowed  or  loaned  their  stock  bal- 
ances in  ''the  account^shall  extend  said  balances 
on  their  statements  at  the  closing  bid  price, 
designated  as  long  or  short,  and  upon  deposit- 
ing said  statement  with  the  manager  of  the  Clear- 
ing House,  shall,  by  that  act,  authorize  him  to 
borrow  or  loan  such  stocks  as  said  parties  may 
be  long  or  short,  as  shown  by  the  balance  ex- 
tended on   said   statement,   and    said    manager 


BY-LAWS  75 

shall  be  authorized  to  borrow  or  loan  said  stocks 
to  any  parties  who  may  have  stocks  open  in  the 
Clearing  House,  as  shown  by  their  statements. 
Notice  that  such  loans  have  been  made  and  the 
names  of  the  parties  thereto  will  be  delivered  at 
the  manager's  office  on  or  before  2  p.  m. 

Loans  made  by  the  manager  are  for  one  day 
only,  unless  renewed  between  members,  and  no- 
tice thereof  from  both  parties  given  to  the  man- 
ager of  the  Clearing  House. 

For  any  neglect  to  deliver  to  the  Clearing 
House  the  statement  aforesaid  before  the  hour 
mentioned  above,  or  for  each  mistake  in  said 
statement,  a  fine  of  $1.00  shall  be  imposed. 

Members  who  have  trades  open  on  their  sheets 
in  the  Clearing  House  shall,  upon  receipt  of  the 
daily  notice  from  the  manager,  immediately 
make  comparison  with  the  parties  with  whom 
they  have  trades,  as  shown  by  said  notice,  shall 
deliver  to  said  parties  a  check  slip  (signed  by  a 
properly  authorized  person),  with  the  amount  of 
stock  open  and  the  amount  of  difference  to  be 
collected  from  or  to  be  paid  to  the  Clearing 
House.     Said  check  slip  to  be  deposited  in  the 


76  THE    CHICAGO   STOCK   EXCHANGE 

Clearing  House  on  the  same  day  in  a  letter  box 
provided  for  that  purpose. 

Sec  6.  Deliveries  of  cash  stock  on  transac- 
tions in  *'the  account"  shall  be  made  on  the 
ast  day  of  each  month.  Provided,  however, 
should  the  last  day  of  any  month  occur  on  a 
holiday,  or  on  a  day  when  the  Exchange  is 
closed  for  business,  or  on  a  Saturday,  then  in 
that  case  deliveries  shall  be  made  on  the  first 
business  day  preceding. 

Sec.  7.  Stock  balances,  as  shown  by  the 
statements  rendered  for  cash  settling  days,  must 
be  delivered  and  paid  for  at  the  closing  bid 
price  of  the  previous  day,  as  per  manager's 
notices,  before  1:30  p.  m.  In  default  thereof 
said  stock  shall  be  closed  out  in  accordance 
with  the  terms  of  Article  XVII  of  these  By- 
Laws. 

Sec.  8.  Whenever  a  member  fails  to  pay  the 
balance  due  on  his  statement  by  10:15  a.  m. 
(except  on  Saturday,  when  it  shall  be  paid  by 
9:45  a.  m.),  the  manager  shall  notify  the  presid- 
ing officer  of  the  Exchange,  whose  duty  it  shall 
be  to    forthwith  cause  the  stock   balances,    as 


BY-LAWS  77 

shown  by  the  statement  of  the  delinquent,  to 
be  bought  in  or  sold  out  under  the  rules  as  the 
case  may  be,  and  assess  the  party  in  interest  on 
the  statement  pro-rata.  In  case  any  member 
owes  an  additional  amount  caused  by  errors, 
disputes  or  assessments,  said  amount  shall  be 
paid  within  one  hour  from  the  time  of  notifica- 
tion of  the  same,  otherwise  the  party  will  be 
considered  as  having  failed  and  be  treated  ac- 
cordingly. 

Sec.  9.  Whenever  a  member  is  unable  to 
meet  his  contracts  on  transactions  made  in 
**the  account,"  he  shall  make  a  statement  of 
his  transactions,  to  be  audited  that  day,  and 
deliver  it  to  the  manager  or  presiding  officer  of 
the  Exchange. 

Sec.  10.  The  manager,  or  any  assistants  em- 
ployed in  the  manager's  office,  are  positively 
prohibited  from  receiving  any  securities  or 
currency,  or  any  other  evidences  of  value,  ex- 
cept the  checks  and  drafts  hereinbefore  men- 
tioned in  these  rules. 

Sec.  II.  The  same  rules  as  to  notice,  time 
and  place  that  govern  defaults  in   other  con- 


78  THE   CHICAGO   STOCK   EXCHANGE 

tracts  shall  apply  to  transactions  in  "the  ac- 
count." 

Sec.  12.  Neither  the  Exchange  nor  any  of 
its  members  (except  those  making  the  errors), 
the  manager,  or  any  assistants,  shall  be  respon- 
sible for  any  errors  made  in  the  statements  to 
the  manager,  but  the  errors  must  be  settled  and 
adjusted  at  once  between  the  members  making 
said  errors  when  notified  by  the  manager  to  do 
so.  The  manager  shall  report  any  neglect  or 
refusal  to  comply  with  these  rules  to  the  Pre- 
siding Officer  of  the  Exchange. 

Sec.  13.  The  margin  to  be  deposited  on 
Stocks  traded  in  the  Clearing  House  shall  be 
as  follows: 

On  Stocks  selling  under  per  share. 

$  50  per  share  the  margin  shall  be    S  5 

50  to  gioo    ''         "       "         ''  *'      "       10 

100  ''    150   '*       ''     ''       ''         ''     ''     15 
150  ''    200   '*       ''     ''       ''         *'     "     20 

200  and  over  '*       '*         **  **      "       25 

And  upon  the  price  of  the  security  fluctuating  so 
as  to  affect  the  margins  as  above  either  party 
shall  have  the  right  to  call  an  additional  margin 
sufficient  to  restore  the  same  to  the  prices  above. 


BY-LAWS  79 

Sec.  14.  Margins  deposited  on  trades  in  the 
Clearing  House  shall  be  considered  as  a  margin 
or  as  a  part  of  same  under  Section  i  of  Article 
XVI  of  these  By-Laws.  All  such  margins  to  be 
deposited  in  the  Gearing  House. 

Sec.  15.  No  clearance  is  completed  until  the 
stocks  are  all  borrowed  or  loaned  and  substitu- 
tions made  and  notice  posted  and  announced  to 
that  effect  by  the  manager  of  the  Clearing 
House. 

Sec.  16.  The  brokers  have  the  party  they 
made  trade  with  or  party  received  from  the 
Clearing  House  on  the  substitution  of  the  day 
before,  in  case  of  any  failures  between  the  hours 
the  sheets  are  put  in  the  Clearing  House  (9:45 
a.  m.)  and  the  time  the  notice  is  posted  that  the 
substitutions  are  ready  for  that  day. 

Sec.  17.  In  the  event  of  the  announcement 
of  the  failure  of  any  member  to  meet  his  con- 
tracts, only  such  stocks  as  appear  on  his  sub- 
stitution sheet  of  the  day  of  the  failure  shall  be 
allowed  to  clear  on  the  Clearing  House  sheet  of 
the  following  morning.  All  other  stocks  bought 
in  or  sold  out  for  him  as  "account"  stock  shall 
be  settled  outside  of  the  Clearing  House. 


80  THE   CHICAGO   STOCK   EXCHANGE 

Sec.  i8.  When  any  member  fails  to  execute 
any  contracts  required  of  him  by  the  Clearing 
House,  the  margin  checks  deposited  by  such 
member  for  the  protection  of  other  members  con- 
tracting with  him  through  the  Clearing  House, 
shall  be  held  first  for  that  special  purpose,  and 
after  satisfying  the  claims  of  such  members  to 
the  extent  of  the  margin  rule  of  the  Clearing 
House,  the  balance,  if  any,  shall  be  held  for  a 
period  not  exceeding  ten  days  as  a  trust  fund  for 
a  pro  rata  distribution  among  other  creditors, 
who  are  members  of  the  Chicago  Stock  Ex- 
change. 


INDEX 

..TO.. 

Constitution  and  By-Laws. 


Access  to  Minutes, 69 

"Account,  The" — Rules  of  trading  in, 

73,  74,  75,  76,  n.  78,  79,  80 
Acts  detrimental  to  the  Exchange,         •        •        •  37 

Admissions— Committee  on, 10 

Advertising  Stocks, 63 

Agamst  uniting  with  other  organizations,        .  72 

Application  to  list  Stocks,  etc.,        .  63,  64,  65 

Arbitration  Committee,  11 

Arrangements — Committee  of,         ...        .  10 

By-Laws, 44 

Bonds,  58 

Bids  and  Offers, 46,  47,  48 

Calls,                  45 

Chairman  and  Vice-Chairman — How  chosen,        .  6 

"           "               "              — Vacancy,      .        .  6 

—Duties  of,      .        .  14 


82 


THE   CHICAGO  STOCK   EXCHANGE 


Claims  against  members, 

Clearing  House  Committee,     . 

"  "      Manager — How  chosen 

"  *'  "        — Vacancy, 

Clerk — Duties  of,      . 

Commissions, 

"  — Committee  on, 

"  — No  Bonus, 

"  — Non  Members, 

"  — Securities  Excepted, 

"  — Between  Members, 

"  — Suspended  Members, 

"  — Penalty  for  violation, 

Communications,       .... 

Constitution — obligation  to  abide  by, 
"         — Alterations  of, 

Contracts— Mutual  Deposit  on. 

Creditors — Rights  of,        .        .        . 


Dealing  with  a  person  not  a  member, 

Default,  

Deliveries — Hours  for, 

**  — Payment, 

"         — by  certificate  and  power, 

"         — Irregularities  in. 
Disputes — settlement  of. 

Dividends, 

Dues  and  Fines,        .... 
"        "        "     Penalties  for  non-payment, 


25. 


71 
13 
6 
6 

17 

28 

12 

28 

29 

29,30 

30 

30.31 

31 

69 

32.33 

35.36 

59.60 

26,  33 

49 
60 

52 
52 

53.54 
55 

50,51 
57 
66 
66 


83 


Elections, 4. 26 

Eligibility  to  office  or  position,         ....  6 

Fictitious  Sales, 27 

Finance  Committee, 9 

Fraud — Members  guilty  of, 31 

Government  of  Exchange 3 

Governing  Committee— Election  and  classification,  4,  5 

"                   "         — Composition,     ...  3 

"                   "         — Vacancies,  ^       .        .        .  6 

"                   '*         —Powers  of — Pay,        .        .  7 

"                   "         —Quorum—Disabilities,  8 

"                   "         —Removals,         ...  8 
'•                   "         — Power  to  question  members,      34 

'*                   "         — Power  to  suspend,    .        .  36 

•'                   "         — Meetings  of,               .        .  70, 71 
Gratuity  Fund,                                  37,38,39,40,41,42,43 

Holidays, 55 

Hours  for  business, 44»  45 

Initiation  Fee,  and  when  to  be  paid,        ...  18 

Interest,             49.  50 

Law  Committee, 12 

Legal  Interference, 33 

Liability  of  the  Exchange, 34»  35 

Membership — Applications  for,                       .  18 

"           —Eligibility  to,              ....  18 


84 


THE  CHICAGO   STOCK   EXCHANGE 


Membership — Purchased  for  account  of  the 

Exchange^     .        .        .        .18, 

— Limit  of,     . 

— Misstatement  of  applicants, 
— Transfer  of,       .        .        . 
— Contracts,  etc.,  to  become  due, 
— of  deceased  members, 
— When  deprived  of, 
— No  transfer  allowed  until  all  dues 
are  paid, 
Misconduct — Penalties  for, 

Nominating  Committee, 

Officers,  .... 


Operating  for  another  member, 
Partnerships, 

"  — Dissolution  of, 

Payment  for  stock. 
Place  of  business. 
President — How  elected, 

*'        — Vacancy  in  office  of, 

**        — Duties  of, 
Printing — Committee  on, 

Quorum  of  Members, 


Record  of  Sales, 
Registry  of  Stocks, 
Revenue  of  the  Exchange, 


19, 

36 

19 

19 

21 

22 

21 

22 

22 

22 

23 

66 

67 

58,59 

19,20 
20,71 

28 
19 

4 
6 

13 
12 

26,  27 

45.46 
65 
35 


INDEX  85 

Secretary — How  chosen, 6 

"        —Duties  of, 15,16 

Special  Meetings  of  the  Exchange,        .        .       34,  67,  68 

Standing  Committees, 9 

**  "  — Reports  to  Governing 

Committee,  13 

Stocks— when  due,            55 

Stock  List — Committee  on, 12 

Strangers — Admission  of, 69 

Suspended  Members, 23 

"                   **        — Reinstatement  of       .        .  23 

"                   "        —To  file  list  of  creditors,      .  24 

"                   "        — Rights  deprived,  25 

"                   •*        — Partnership  with,                .  26 

Title  of  Association, 3 

Transactions  on  Time, 49f  50 

Transfer  Books— Closed, 54i  55 

"           "     — Contracts  maturing,    ...  56 

Treasurer— How  elected, 4 

"         — Vacancy  in  office  of,     ...        .  6 

"        —Duties  of 15 

Under  the  Rule— Closing  contracts,  60,  61,  62,  63 

Vice-President — How  chosen,         ....  6 

*•            — Vacancy  in  office  of,     .        .        .  6 

"           —Duties  of, 14 


Amje;xdment  to  By-Laws, 
Passed  Jan'y  i8,  1899. 

ARTICLE  XXXIL 

Kl  iJl.S  GOVERNING  TRADING  IN  STOCKS   IN   THE  CLEAR- 
ING HOUSE  FOR  REGULAR  DELIVERY. 

Section  i.  There  shall  be  a  Clearing  House  Depart- 
ment for  the  purpose  of  acting  as  the  common  a^ent  of 
the  members  of  the  Exchange  m  receiving  and  delivering 
such  securities  as  may  from  tim,e  to  time  be  designated 
l)y  the  Governing  Committee. 

Sec.  2.  Nothing  in  the  conduct  of  the  business  of 
clearing  shall  attach  any  liability  to  the  Stock  Exchange 
or  to  any  members  of  the  Clearing  House  Committee, 
and  delays  on  the  part  of  the  Clearing  House  shall  not 
attach  any  liability  to  members  who  are  clearing. 

Sec,  3.  The  Clearing  House  Committee  shall  have 
the  general  charge  in  the  Clearing  House  of  all  stocks 
traded  in  through  said  Clearing  House  under  this  Article, 
hut  It  sh^ll  require  a  vote  of  the  Governing  Committee  to 
designate  from  time  to  time  the  securities  which  shall  be 
cleared,  and  in  all  transactions  in  such  securities  the  de- 
liveries §hall  be  made  through  the  Clearing  House,  unless 
otherwise  specially  stipulated  in  the  bid  or  offer  or  other- 
wise agreed  upon.  It  being  especially  understood  that 
only  purchases  and  sales  made  "Regular^'  shall  be  deliv- 
ered through  the  Clearing  House. 

Sec.  4.  The  Governing  Committee  hereby  adopt  the 
following  rules  for  clearing  stocks  under  this  Article: 

I.  All  purchases  and  sales  shall  be  entered  upon  the 
])lanks  furnished  by  the  Manager  and  selected  for  that 
purpose,  and  said  blanks  properly  filled  out  and  bal- 
anced, accompanied  by  the  delivery  or  receipt  slip  (prop- 
erly signed)  and  accompanied  also  by  a  draft  drawn  to 
their  own  order  for  any  amount  due  members,  as  shown 
by  said  statements,  must  be  delivered  to  said  Manager 
before  5  o'clock  p.  m.  of  the  day  on  which  said  trades  are 
made,  except  on  Fridays,  when  trades  made  on  that  day 


3 


and  trades  made  on  the  following  Sat urdaW shall  both  be 
properly  presented  to  the  Manager  before  ft  o'clock  p.  m. 
on  Saturdays.  It  shall  be  the  duty  of  the  Manager  of 
said  Clearing  House,  as  the  Agent  of  all  parties  trading 
with  the  Clearing  House,  to  compare  and  examine  the 
statements  rendered,  and  to  report,  should  any  errors  be 
found,  to  the  parties  making  said  errors,  immediately. 
Parties  in  error  must  at  once  proceed  to  adjust  the  same 
and  correct  their  statements.  All  balances  due  from 
mernbers,  as  shown  by  the  statements,  shall  be  paid  by 
certified  check,  drawn  to  the  order  of  the  bank  designated 
for  that  purpose,  and  delivered  to  the  Manager  before 
10:15  a.  m.  the  next  day  (except  on  Saturdays,  when  the 
balance  must  be  paid  before  9:45  a.  m.). 

s^o         2.    As  early  as  possible  in  the  afternoon  and  before 
' —     '^^o'clock  (or  before  J^o'clock  on  Saturdays)  the  seller  who 
.^  .^f  has  contracted  to  deliver  securities  through  the  Clearing 
/a-V     House,  shall   send  to  the  office  of  the  buyer  his  own 
^      "Deliver  Ticket,"  and  shall  receive  m  exchange  the  buy- 
er's "Receive  Ticket.''    Other  comparison  is  unnecessary. 
The  "Deliver  Ticket"  must  not  be  left  unless  the  ex- 
change is  made  and   the   tickets  exactly   agree.     With 
each  "Deliver  Ticket"  there  must  be  attached  a  Bill  of 
Sale  of  the  amount  of    stock   sold,   stamped   with  the 
requisite  amount  of  Internal  Revenue  Stamps  during  the 
contmuance  of  the  United  States  Laws  governing  the 
same. 

3.  On  the  day  following  the  trading  at  11  o'clock  a.  ni. 
or  as  much  earlier  as  practicable,  the  Manager  of  the 
Clearing  House  shall  furnish  to  members  trading  through 
the  Clearing  House,  a  notice  giving  the  names  of  those 
parties  to  whom  they  are  to  deliver,  or  from  whom  they 
are  to  receive  stocks,  as  shown  by  the  balances  on  their 
respective  sheets  of  that  day,  and  also  the  drafts  from 
the  Clearing  House  for  any  balance  that  may  be  due  them. 

For  any  neglect  to  deliver  to  the  Clearing  House  the 
statement  aforesaid  before  the  hour  mentioned  above,  a 
fine  of  $5.00  shall  be  imposed,  and  for  each  mistake  in 
said  statement  a  fine  of  f  i.oo  shall  be  imposed. 

No  transactions  except  in  lots  of  50  shares,  or  multiples 
thereof,  shall  be  allowed  to  clear  through  the  Clearing 
House. 


4.  Settlement  prices  for  deliveries  through  the  Clear- 
ing House  shall  be  established  by  the  closing  bid  price 
of  Slocks  made  at  a  call  by  the  Chairman  on  each  day, 
(except  Fridays)  at  1:30  p.  m.,  and  on  Saturdays  the  call 
shall  be  made  at  1^:30  a.  m.  for  the  settlement  prices  of 
trades  made  on  Friday,  as  well  as  on  Saturday. 

5.  When  parties  are  respectively  either  to  pay  for  or 
deliver  securities  on  Clearing  House  notices,  said  pay- 
ment or  delivery  must  be  made  not  later  than  i  o'clock 
p.  m.  on  same  day  the  notices  are  received  (except  on 
Saturdays,  when  payments  and  deliveries  shall  be  made 
on  the  following  business  day).  If  said  payment  or  de- 
livery be  not  completed  at  that  hour  (i  p.  m.).  then  the 
party  who  failed  respectively  either  to  receive  his  securi- 
ties, or  to  receive  payment  for  securities,  shall  give  notice 
in  writing  to  the  delinquent,  after  which  the  presiding 
officer  shall  be  authorized  at  once,  on  request,  in  writing, 
respectively  either  to  buy  in  or  sell  out  for  cash  said  se- 
curities, and  the  loss  must  be  paid  not  later  than  1 45  p. 
ni.  of  the  same  day.  under  penalty  of  being  declared  in- 
solvent. If  the  delinquent  shall  prove  to  be  insolvent, 
then  the  loss  shall  be  paid  by  those  parties  having  the 
original  transactions  on  the  insolvents'  sheet  of  those  se 
curities  on  which  the  party  shall  have  defaulted,  said  loss 
to  be  divided  among  them  pro  rata.  If  the  delivery  of 
securities  is  not  enforced  when  du»-.  the  original  contract- 
ing parties  on  the  sheet  of  the  party  in  default  are  re- 
leased from  liability  on  their  contracts,  and  the  delivery 
between  the  same  parties  is  postponed  until  the  following 
day. 

6.  All  claims  for  loss  must  be  made  to  the  Clearing 
House  Committee  on  the  same  day  that  the  loss  was 
made.  Any  balance  which  shall  be  due  to  an  insolvent 
on  a  sheet,  whether  actually  paid  to  him  or  allowed  as  a 
credit  on  sheets  where  he  is  Dr.  to  the  Clearing  House, 
shall  be  refunded  by  the  Stock  Exchange  to  the  sheet 
where  he  appears  as  a  Creditor,  and  such  payment  shall 
constitute  a  charge  against  the  membership  of  insolvent, 
and  shall  in  all  respects  be  treated  as  an  ordinary  fine. 


Addition  to  Section  3  of  Article  III 
OF  THE  Constitution. 

PASSED     FEBRUARY     27,     I902. 

Any  number  of  members,  not  less  than 
twenty,  may  nominate  other  candidates  for  the 
same  office  or  offices,  said  nominations  to  be  in 
writing  with  the  signatures  of  the  persons  so 
nominating,  and  to  be  placed  in  the  hands  of 
the  Secretary.  A  certificate  of  the  Secretary 
shall  be  appended  to  the  names  which  shall  be 
nominated  other  than  those  nominated  by  the 
regular  nominating  committee,  certifying  that 
they  have  been  nominated  by  not  less  than 
twenty  members  of  the  Exchange. 

The  names  of  all  persons  to  be  voted  for  on 
any  ticket  other  than  the  regular  ticket  at  said 
election,  shall  be  handed  to  the  Secretary  at 
least  live  days  before  said  election  and  be 
posted  by  him. 


RETURN  TO  DESK  FROM  WHICH  BORROWED 

LOAN  DEPT. 

This  book  is  due  on  the  last  date  stamped  below,  or 

on  the  date  to  which  renewed. 

Renewed  books  are  subject  to  immediate  recall. 


-  ,, 

f^m^^'    ■ 

^'■. 

MAY  15  1957 

LD  21-100m-6,'56 
(B9311sl0)476 


General  Library 

University  of  California 

Berkeley 


I  00718 


